The ‘Musk effect’ is sweeping the expectations of sale of Tesla. That is JPMorgan’s theory, which has announced a strong cut of its sale expectations of the electric cars firm for this quarter. The bank calculates that Sales will fall between 8% and 28% in this first quarter of 2025 compared to the previous quarter, the last of 2024. The cause is very clear: the sinking in popularity of Elon Musk for his role in the government of Donald Trump. “It is hard for us to think about something similar in the history of the automotive industry, that a brand has lost so much value so quickly,” says Ryan Brinkman, bank analyst, a client note.
Brinkman points out that the Boicot campaign against Musk is especially serious for the company, because “it is not specific to any nation or geography,” but that It is being seen everywhere: in Europe, in the US and in China, its main markets. Until now, the most similar examples had been boycott from one country to another for a temporary and specific political dispute, such as China to Japanese cars between 2012 and 2017. In this case, however, it seems that the only solution would be the march of Musk itself.
Specifically, JPMorgan points to “paper Musk divisive in Trump’s government “, as director of the Department of Government Efficiency (Doge) as a cause of his Fall in the US. Meanwhile, while, In Europe, he blames Musk’s statements supporting Russia in his war against Ukraine, attacking NATO and supporting the extreme right political parties. A ristra of acts and statements that have made it a public enemy of leftist consumers, a group that was precisely the most inclined to buy electric cars.
Bank’s calculations leave their shares in just $ 120, half of what was quoted at this Thursday’s opening. As soon as Wall Street has opened, Tesla has fallen by 5%, resuming the sinking it records since December and has made half of its stock market capitalization at this time.
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