JPMorgan says Tesla’s recent layoffs suggest the company’s long-term growth prospects are dwindling

Tesla’s recent layoffs suggest the company’s long-term growth prospects are dwindling, according to a recent note from JPMorgan.

“>10% global layoff undermines hypergrowth narrative and should further dispel notion big 1Q delivery miss was somehow supply-driven,” JPMorgan said.

Instead, Tesla’s big first-quarter delivery miss was likely driven by a concerning decline in demand for electric vehicles, according to the note.

And the company’s premium valuation is at substantial risk if growth is stuttering.

JPMorgan rates Tesla at “Underweight” with a $115 price target.