Investment bank J.P. Morgan Chase‘s “sell” rating on Tesla Inc. (NASDAQ:TSLA) could trigger a sell-off for the stock as the SpaceX IPO looms, TV host Jim Cramer thinks.
JP Morgan Bearish On Tesla
Analysts at the bank think that the expectations for Tesla’s performance had “collapsed for all financial and performance metrics across all time periods through the end of the decade,” according to a post by Yahoo Finance executive editor Brian Sozzi on Monday. Analysts added that investors must be cautious as Tesla’s rise is tied to “an expectation for a sharp pivot to materially better than earlier expected performance in the time beyond this decade.”
Cramer, quoting Sozzi’s post, shared that the note may trigger a sell-off for the EV giant’s stock. “Bold …Must mean people are going to sell this one to buy SpaceX,” he said in the post.
Morgan Stanley Predicts 1.6 Million Deliveries
Meanwhile, Morgan Stanley analyst Andrew Percoco expected a nearly 15% upside for Tesla stock, predicting over 1.6 million vehicle deliveries in 2026 for the automaker, as well as sharing that the company’s ramping up of its Robotaxi service in Austin could determine the value of Tesla stock, which could be a tall order considering that Tesla’s Full Self-Driving (FSD) system is facing a probe by the National Highway Traffic Safety Administration (NHTSA)
However, according to its Q1 2026 delivery figures, Tesla delivered over 358,000 vehicles worldwide, which fell short of market expectations as energy storage deployments also went down.
SpaceX IPO
SpaceX, too, is gearing up for its IPO, with indexes like the Nasdaq 100 reportedly changing their rules to help facilitate an expedited entry into the platform for SpaceX. There were reports that SpaceX was targeting a $2 trillion valuation ahead of the listing, but those reports have been rubbished by CEO Elon Musk.
On the other hand, the S&P 500 Index, which is managed by S&P Global Dow Jones Indices, was also reportedly mulling changing its rules for SpaceX’s entry into the index. However, responding to a request for comment by Benzinga, a spokesperson for the S&P 500 said that the index did not “comment on speculation regarding potential index or methodology changes.”
According to Benzinga Edge Rankings, Tesla offers poor Momentum and satisfactory Growth, but fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: TSLA fell 4.04.% to $365.85 during Pre-market on Monday.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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