TSLA downside

TSLA to JPM Morgan ratio created H&S formation on weekly chart. Neckline have been broken and now ratio bounced up to retest Neckline before making lower lows. It also happens that 50 Weekly MA is around the same zone as the neckline. Ratio minimum target is about 1.5 on weekly chart or 1.35 on daily. It can go lower, but I will reassess it once ratio gets closer to target levels.

How is this ratio helpful? Essentially instead of pricing TSLA in dollars I am pricing it in JPM shares. Today it takes about 4.7 shares of JPM to buy one share of TSLA, and this chart suggests than in the future it should take about 1.5 of JPM shares to buy one TSLA share.

Current JPM stock price is at $151. It’s really hard for me to imagine a scenario when TSLA stock doesn’t go much lower than current levels and target ratio up above reaches 1.5. It would essentially imply a huge rally in JPM, which I don’t exactly foresee. Bottom line I’m expecting significant weakness in TSLA on a weekly basis to be materialized in the coming months.

With EV competition catching up and continuing delays in full FSD (aka robotaxis) weakness in the stock makes sense.

As a side note, my $660 price target for TSLA has been reached. It can do a bit higher, but this is area of significant risk (from downside/upside perspective)