Tesla faces unprecedented brand damage, says JPMorgan

Tesla has experienced significant reputational damage recently, according to JPMorgan analysts. They noted that this decline is unprecedented in the automotive industry, comparing it to past sales drops faced by Japanese and South Korean automakers in China. Protests against CEO Elon Musk have occurred at Tesla locations in the U.S., alongside violent incidents targeting the company. Tesla's brand value fell from $66.2 billion at the start of 2023 to $43 billion by October 2024, partly due to Musk's political involvement. Sales have dropped sharply, with a 49% decline in shipments to China and five consecutive quarters of falling sales in California. JPMorgan has revised its delivery forecasts for Tesla, expecting 355,000 deliveries in the first quarter, down from earlier estimates.