Protestors at a Tesla dealership in New York (Leonardo Munoz/Getty Images)

JPM analysts struggle to understand why Elon Musk is destroying Tesla’s brand

“Mr. Musk’s work with the Department of Government Efficiency has proven controversial.”

3/12/25 11:53AM

JPMorgan’s Tesla analysts joined the parade of Wall Street observers axing forecasts for Tesla vehicle sales Wednesday, reducing their full-year 2025 estimate for deliveries 11% from 1.994 million to just 1.775 million. That would be a year-over-year decline of 1%.

But the more interesting part of the note is the palpable befuddlement the analysts express about Tesla CEO Elon Musk’s behavior, which has generated fury from key constituencies worldwide. In the US, the company’s core consumers are enraged by his work as an agent of the Trump administration’s legally murky campaign to disrupt the federal civil service. Meanwhile, his flirtation with far-right European politics and comments on Ukraine have enraged consumers in Europe. JPM analysts write:

“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly, with perhaps the closest example being the decline in sales of Japanese and Korean brand vehicles in China in 2012 and 2017, respectively, amidst various diplomatic disputes (Japanese brand sales recovered after a year, while Korean brand sales never have), although the damage in that case was confined to a single market, whereas the decline in Tesla sales in 2025 is not specific to any one nation or geography.”

Citing polling data, they write that Musk’s immersion in Trumpist politics is a problem in the US:

“While views toward Mr. Musk have increased and decreased in roughly equal parts amongst Republicans and Democrats, respectively, resulting in the Tesla brand being viewed just as positively by Trump voters (+18 ppts) as it is negatively by Harris voters (-18 ppts), it is Democrats who are more open to purchasing EVs.”

Meanwhile, on the continent...

“Tesla sales in Europe are under far greater pressure than at home as a consequence of statements by Mr. Musk pertaining to the war in Ukraine, U.S. participation in NATO, and far-right political parties.”

While some of those issues may have played into the more than 50% drop in Tesla’s share price since its December peak, retail sentiment, rather than business fundamentals, drives Tesla’s share price. And today, following the softer-than-expected inflation report, the vibes for Tesla and other Trump-related trades are good.

Nia Warfield

Six Flags pops after reiterating its guidance as theme park attendance rebounds

Six Flags shares rose more than 7% today after the company reported a rebound in attendance and early season-pass sales heading into the fall. The nine-week period ending August 31 saw 17.8 million guests, up about 2% from the same stretch in 2024, with stronger momentum in the final four weeks.

More importantly, Six Flags reaffirmed its full-year adjusted EBITDA guidance of $860 million to $910 million, showing confidence that its cost and operations strategy can stay strong for the duration of the year. Riding that wave, Six Flags also said early 2026 season pass unit sales are pacing ahead of last year, and average season pass prices are up around 3%.

The good vibes come despite a drop in in-park per capita spending, especially from admissions, where promotions and changes to attendance mix (which parks or days guests visit) have weighed. Earlier this week, the amusement giant extended a new agreement that extended its position as the exclusive amusement park partner for Peanuts™ in North America through 2030.

Despite the rally, Six Flags shares are down around 52% year-to-date.

Max Knoblauch

Rivian turns red on the year, squeezed by a recall and the looming end of the EV tax credit

Shares of EV maker Rivian are down more than 5% on Friday following the company’s recall of 24,214 vehicles due to a software issue. The stock move erases Rivian’s year-to-date gain and turns the company negative on the year.

Rivian’s 2025 model year R1S and R1T are affected by the defect, which was identified after a vehicle’s hands-free highway assist software failed to identify another vehicle on the road, causing a low-speed collision. Rivian said it’s released an over-the-air update to fix the issue.

The recall marks Rivian’s fifth this year, affecting nearly 70,000 of its vehicles.

Rivian’s shares are down more than 20% from their 2025 high, which came prior to the passage of President Trump’s “big, beautiful bill.” Through the legislation, the $7,500 EV tax credit is set to expire at the end of the month.

J. Edward Moreno

Moderna, Pfizer dip after WaPo reports Trump officials’ plan to link Covid vaccines to child deaths

Vaccine makers are falling after The Washington Post reported that the Trump administration plans to link the coronavirus vaccine to 25 child deaths.

Moderna and Pfizer, the two companies who sell the vaccine in the US, fell by more than 5% and 2%, respectively. The coronavirus vaccine is virtually the only revenue driver for Moderna, while Pfizer has a larger and more diverse portfolio.

Trump officials to link child deaths to covid shots, alarming career scientists

Hyunsoo Rim

DEVELOPING PROBLEMS

Concerns about rising government debt are not strictly an American problem

Global government debt piles are swelling to record levels. That’s an issue for many nations, but developing countries may be most at risk.

Closeup rolled of variety banknote and multi currency around the world. Exchange rate and Forex investment concept.-Image.

Nia Warfield

RH slips after missing Q2 estimates and trimming its outlook amid cost pressure

Restoration Hardware shares dropped Friday morning after the luxury furniture brand missed Q2 estimates and tightened its full-year outlook.

Adjusted earnings per share came in at $2.93, below the Street’s estimate of $3.21. Revenue was $899.2 million, also missing analysts’ forecast of $905 million.

RH now expects full-year revenue growth of 9% to 11%, down from prior guidance of 10% to 13%, as margins get squeezed by tariffs and weakness in the housing market. Wall Street had been looking for about 10% growth this year.

The retailer is taking steps to blunt cost pressures, including shifting sourcing away from China. RH expects receipts to fall from 16% in Q1 to 2% in Q4, with vendors absorbing a meaningful portion of the tariff impact. RH is also boosting US manufacturing capacity in North Carolina and pushing back a new concept launch to next spring.

RH shares are down about 43% year to date.