JP Morgan reiterated its Underweight rating on Tesla (TSLA) on April 12, 2026. Analyst Ryan Brinkman flagged a record inventory of over 50,000 unsold vehicles from the first quarter. The firm noted that aggressive price cuts failed to stimulate sufficient consumer demand. Tesla produced significantly more vehicles than it sold in Q1, marking its largest inventory build-up in history.
The report cautioned that Tesla's valuation relies heavily on unproven ventures like robotaxis and humanoid robots. Brinkman identified above-average execution risk for these emerging technologies. Tesla faces intensifying competition in these sectors from established players like Alphabet's Waymo.
The bank maintained a price target implying a substantial decline from current share price levels. First-quarter deliveries fell short of consensus estimates. Tesla continues to face growing pressure from Chinese electric vehicle manufacturers such as BYD.