Tesla, Inc. is facing potential sell-off fears due to concerns over its financial performance and the upcoming SpaceX IPO. Investment bank J.P. Morgan Chase has given Tesla a “sell” rating, which could trigger a sell-off for the stock.
JP Morgan Bearish On Tesla
Analysts at J.P. Morgan Chase believe that expectations for Tesla’s performance have “collapsed” across all financial and performance metrics. They caution investors to be careful, as Tesla’s rise is tied to an expectation of a sharp pivot to better performance in the future.
TV host Jim Cramer agrees, stating that the note from J.P. Morgan Chase may trigger a sell-off for the EV giant’s stock. He thinks that investors may sell Tesla stock to buy SpaceX stock instead.
Morgan Stanley Predicts 1.6 Million Deliveries
Meanwhile, Morgan Stanley analyst Andrew Percoco expects Tesla to deliver over 1.6 million vehicles in 2026. He also believes that the company’s Robotaxi service in Austin could determine the value of Tesla stock. However, Tesla’s Full Self-Driving (FSD) system is facing a probe by the National Highway Traffic Safety Administration (NHTSA).
Tesla’s Q1 2026 delivery figures showed that the company delivered over 358,000 vehicles worldwide, which fell short of market expectations. Energy storage deployments also decreased.
SpaceX IPO
SpaceX is preparing for its IPO, with indexes like the Nasdaq 100 changing their rules to facilitate an expedited entry into the platform. There were reports that SpaceX was targeting a $2 trillion valuation, but CEO Elon Musk has denied these claims.
The S&P 500 Index is also reportedly considering changing its rules for SpaceX’s entry into the index. However, a spokesperson for the S&P 500 stated that the index does not comment on speculation regarding potential index or methodology changes.
Price Action
Tesla’s stock price fell 4.04% to $365.85 during pre-market hours on Monday. The company’s poor momentum and unfavorable price trend in the short, medium, and long term are causes for concern.
Overall, Tesla is facing significant challenges due to its financial performance and the upcoming SpaceX IPO. Investors should be cautious and carefully consider their investment decisions.