Tesla Stock: Should Tesla Stock Fall 48%? JP Morgan points to an unprecedented development for the EV market leader

Elon Musk's Tesla could be facing a major crisis as the top electric vehicle makers in the United States could plunge a whopping 48% in the coming months, which could be a reason for their high valuations, which have been a key problem for US investors already for some time. Tesla's crash could be just one of the most important alarm bells for the US stock market and economy, and its free fall could ultimately have an impact on other stocks as well, especially in the same category.

JP Morgan warns investors about Tesla

JP Morgan is leading the warning parade on Tesla, and its analyst Ryan Brinkman believes a 48-point drop in Tesla could deal a major blow to stock markets towards the end of the year. Tesla's notoriously high valuation may finally be in trouble as US investors may reconsider their decision to push for more Tesla shares towards the end of the year. Meanwhile, affinity for Tesla has actually declined in recent weeks, and according to a Tip Ranks report, the company's lack of volume growth was evident in both the first and second quarters.

Although the stock price is currently at an unnatural high, the gradual decline is beginning and could reach new lows by the end of the year.

Will the US elections affect Tesla shares?

With Elon Musk openly supporting Trump in the US elections and attending the recent Republican campaign rally in Pennsylvania, Tesla shares could see an impact in the coming days due to election developments. However, under these circumstances, other market forces would come into play more strongly, as investors are currently paying particular attention to the high valuations of electric vehicle manufacturers, say analysts at JP Morgan.

FAQs:

Is Tesla now a “Trump trade”?
Although Tesla is not necessarily a “Trump trade” and its growth is dependent on a Donald Trump victory, it could be significantly impacted based on the poll results as its founder is closely aligned with the Republican candidate.

Is the Tesla share price falling?
Tesla has trended downward in recent days, and analysts are warning that electric vehicle makers' stock prices will enter a free fall toward the end of the year.