J.P.Morgan cut its price target on Tesla's stock (TSLA) as the brokerage expects a second straight year of lower deliveries, with analysts also pointing to a change in sentiment toward the EV maker from existing customers and potential new buyers.

There have been reactions toward the brand such as protests at Tesla stores across the U.S. and around the world, sales boycotts, and jettisoning already purchased vehicles in the second-hand market, the brokerage said.

J.P.Morgan also cut its price target on the electric-vehicle maker's shares to $120 from $135. The median target for the stock is $370, according to LSEG data.

The brokerage said it expects Tesla to deliver about 1.78 million vehicles this year, down about 1% from 2024.

Recently, activists have staged so-called "Tesla Takedown" protests to express their displeasure at Elon Musk's involvement in significant reductions to the U.S. federal workforce and the cancellation of contracts funding global humanitarian efforts.

Musk, currently the world's wealthiest person, is leading the Trump administration's Department of Government Efficiency.

In a show of support for the EV maker's CEO Musk, U.S. President Donald Trump said on Tuesday that violence against Tesla dealerships will be labeled domestic terrorism.

Tesla's shares have slumped after hitting an all-time high in December, erasing most of the gains the stock made after Trump won the U.S. election in November.

The stock has gained 10% since Monday's 15.4% slump, its worst one-day drop in four-and-a-half years.

Tesla's market capitalization has dropped 45% since hitting an all-time high of $1.5 trillion on December 17, 2024 to its current value of $798 billion. On January 21, 2025, the day after the inauguration of President Trump, the stock closed at $398.09. On March 11, 2025, it closed at $230.58.