Tesla stock to fall by 48%? JP Morgan is pointing to an unprecedented development for the EV leader

Elon Musk's Tesla could be in for some major fix as the top EV makers in the United States may tumble down a whopping 48% in the coming months, something that could be a reason for their lofty valuations, that has been a core issue of concern for US investors for some time now. Tesla's fall could just be one of the major warning bells for the US stock markets and the economy, and it's free fall may end up impacting other stocks as well, especially in the same category.

JP Morgan warns investors on Tesla

JP Morgan is leading the warning parade on Tesla, and their analyst Ryan Brinkman thinks that Tesla dropping by 48 points could give a big blow to the stock markets towards the end of the year. Tesla's infamous lofty valuation may finally be in for trouble as US investors may be reconsidering their decision to push for more Tesla stocks towards the end of the year. Meanwhile, the affinity for Tesla has in fact reduced in the past few weeks, and its lack of volume unit growth has been evident in both Q1 and Q2, according to a Tip Ranks report.

Even though its stock market price is sitting at an unnatural high at the moment, it has gradually begun its descent, and may end up touching new lows by the end of the year.

Will US elections lay an impact Tesla stocks?

With Elon Musk openly endorsing Trump for the US elections, and his presence in the recent campaign event of the Republicans in Pennsylvania, Tesla stocks may see an impact in the coming days, based on the electoral developments. However, other market forces would be more prevalent in these circumstances, as investors are taking lofty valuations of the EV makers into primary consideration at this point, feels analysts at JP Morgan.

FAQs:

Is Tesla a 'Trump trade' now?
Although Tesla is not outrightly a 'Trump trade', dependent on a Donald Trump win for its growth, it could be significantly impacted based on the results of the polls as its founder is closely associated with the Republican candidate.

Is Tesla stock price falling?
Tesla has shown a downward trend in the last few days, and analysts are warning about the EV makers' stock prices to go on a free fall towards the end of the year.