US Stock Market Move | Tesla, Inc. (TSLA.US) drops nearly 4% as JP Morgan sharply sells shares, warning of a possible 60% crash.

On Tuesday, Tesla, Inc. (TSLA.US) opened weak and is now down nearly 4% at $340.33. On the news front, ahead of Tesla, Inc.'s first-quarter earnings report, long-term bearish on Tesla, Inc., Morgan Stanley reiterated its "underweight" rating on the electric car and self-driving company on Monday. Analyst Ryan Brinkman pointed out that Tesla, Inc.'s first-quarter delivery report was poor, and the installation of energy storage devices also saw a year-on-year decline. Brinkman and his team currently expect Tesla, Inc.'s first-quarter earnings per share to be $0.30, lower than the previous expectation of $0.43, while the market consensus was $0.38. Brinkman stated, "We still believe that Tesla, Inc. stock will fall by 60% to our target price of $145 in December 2026, and we advise investors to exercise caution with Tesla, Inc. stock. Although the rise in Tesla, Inc.'s stock price reflects a significant increase in the market's profit expectations for the next few years, at least until 2030, all performance indicators have seen a substantial decline. Therefore, investors need to consider execution risk and the time value of money." He noted that despite weak delivery growth, it is "incredible" that Tesla, Inc.'s current stock price is still more than 50% higher than when delivery peaked in June 2022.