Tesla Faces Analyst Skepticism Despite Regulatory Approval

Original: Tesla Scores Regulatory Win, But Analysts Turn More Bearish

Benzinga•Apr 7, 20263 min

In a Nutshell

Tesla Inc. (NASDAQ: TSLA) received a favorable ruling from federal regulators regarding its Smart Summon feature, but analysts are increasingly bearish. JPMorgan's Ryan Brinkman warns of a potential 60% downside with a price target of $145, as Tesla struggles with unsold inventory and a disappointing Q1 2026 performance.

Key Points

01JPMorgan analyst warns of a 60% downside for Tesla shares, setting a target of $145.
02Federal regulators cleared Tesla's Smart Summon feature after finding minimal incidents.
03Tesla's Full Self-Driving software is under investigation for safety concerns.
04Analysts have cut price targets following a delivery miss in Q1 2026.
05Wedbush maintains a bullish outlook with a $600 target, viewing Tesla as an AI company.

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Full Summary

Tesla Inc. (NASDAQ: TSLA) recently received a regulatory win when the National Highway Traffic Safety Administration (NHTSA) closed its investigation into the Smart Summon feature, which allows users to summon their vehicles remotely. The NHTSA found that less than 1% of Smart Summon uses resulted in incidents, with no injuries reported. However, the regulatory landscape remains complicated as the NHTSA is still investigating Tesla's Full Self-Driving (FSD) software due to reports of dangerous driving behaviors. Analysts are reacting to Tesla's disappointing sales figures for Q1 2026, where the company sold fewer cars than expected and accumulated unsold inventory. JPMorgan analyst Ryan Brinkman has lowered his earnings estimates for Tesla, predicting a $0.30 EPS for Q1 and a full-year outlook of $1.80, below the consensus of $1.95. In contrast, Wedbush analyst Dan Ives maintains a Buy rating with a target of $600, emphasizing Tesla's potential in AI and robotics over its vehicle sales. As of now, Tesla shares are down over 3%, trading around $340. The company’s next opportunity to shift perceptions will be during its Q1 earnings announcement on April 22.

Key Figures

$145

JPMorgan's price target for Tesla, indicating a potential 60% downside.

$0.30

JPMorgan's revised EPS estimate for Q1 2026.

$1.80

JPMorgan's full-year EPS outlook for 2026.

$600

Wedbush's target price for Tesla, maintaining a Buy rating.

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Why It Matters

Tesla's regulatory win may boost consumer confidence in its technology, but ongoing safety investigations could affect sales and investor sentiment.

Who is affected

Tesla investors, customers, and potential buyers of Tesla vehicles.

What to know

Investors should monitor Tesla's upcoming earnings report and regulatory developments.

FAQ

The NHTSA found that less than 1% of Smart Summon uses resulted in incidents, leading to the closure of the investigation.

Analysts are concerned about Tesla's disappointing sales figures, growing unsold inventory, and ongoing investigations into its Full Self-Driving software.

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