Tesla: JPMorgan Speaks Of An Unprecedented Collapse In The Industry

Elon Musk is facing an unprecedented storm. Tesla, his jewel, is plummeting on the stock market, losing nearly half of its market capitalization in just a few months. Between declining sales, tarnished brand image, and political turbulence, the situation is worrying analysts. According to JPMorgan, this drop is unprecedented in the history of the automotive industry. How did we get here?

Tesla in crisis: a loss of 48% in a few months

Tesla, already not doing very well in Europe, is in free fall. In less than six months, the company saw its valuation drop from $1.54 trillion to $777 billion. A real crash that can be explained by an explosive combination: declining global sales, strategic uncertainties, and controversies surrounding Elon Musk.

JPMorgan claims to find no equivalent to such a disaster in automotive history.

The numbers speak for themselves:

• 49% decline in market capitalization over six months;
• 355,000 deliveries expected for the first quarter of 202, which is 8% less than in 2024;
• 45% drop in new orders in Europe in January.

This commercial disaster is compounded by a change in perception among consumers. Some Tesla dealerships have even reported customers attempting to hide their vehicle’s logo. Jamie Dimon, CEO of JPMorgan, remains optimistic:

“You have to see Elon as our Einstein. His innovations are disruptive, but the market demands concrete results.”

Will Tesla manage to turn things around before it’s too late?

An unforgiving stock market facing Musk’s strategy

If Tesla is plummeting on the stock market, it’s not just due to weak sales. Investors are increasingly worried about Musk’s strategic decisions, accused of scattering his focus across his various projects, notably SpaceX and X. His involvement in the Department of Government Efficiency (DOGE) under Trump adds a political dimension that is both disturbing and intriguing.

Analysts point to three major risks:

• The impact of Musk’s political choices on Tesla’s perception;
• The likely reduction of tax credits for electric cars;
• Internal management issues due to the CEO’s scattering of focus.

Some observers wonder if Musk still has control over his empire. Others think that the situation could turn in his favor, especially with the upcoming launches of the Tesla robotaxi and the Optimus robot. Wall Street, however, remains skeptical.

Does the market still trust Musk, or is it turning the page?

Trump and Tesla: a controversial alliance

The shadow of Donald Trump looms over Tesla. Initially seen as an asset, the proximity between Musk and the former president has become a topic of division. Analysts at JPMorgan note that Musk’s commitment within the government could harm Tesla more than it helps.

In the United States, protests targeted Tesla dealerships, with some being vandalized. Trump responded by announcing that the perpetrators would be treated as domestic terrorists.

But the economic reality is just as delicate. Tesla could be the first victim of the end of federal subsidies for electric vehicles, a measure heavily supported by Trump. If these aids disappear, Tesla will lose a crucial lever to attract new buyers.

Does Trump really want to support Musk, or is he just trying to strengthen his influence over the automotive industry? One thing is certain: the future of Tesla is today as uncertain as the American political landscape.

Despite this dizzying drop, Tesla retains an asset: its bitcoin holdings. The company could have maximized its profits if it had held onto its BTC, but it still realized $600 million in gains in the fourth quarter of 2024. Proof that, even in the midst of the storm, Musk still knows how to play a few winning moves.