Major Banks Shift to Bearish Outlook on Tesla as Institutional Confidence Wanes

Key Facts

Tesla (TSLA) shares faced downward pressure as three major financial institutions shifted toward a more cautious or bearish stance. Over the past 10 weeks, JPMorgan, Morgan Stanley, and Phillip Securities have re-evaluated their outlook on the electric vehicle maker. The stock declined by more than 1% on Tuesday, reflecting growing skepticism regarding the company's credibility among institutional investors. This shift marks a significant divergence between institutional sentiment and the typically more optimistic retail investor base. Analysts suggest that the revised ratings are driven by a fundamental reassessment of the 'Tesla story' and its long-term growth trajectory. The bearish turn from top-tier banks could trigger further institutional outflows, potentially weighing on the stock's performance in the near term.