Investment bank JPMorgan continues to be bearish on electric vehicle manufacturer Tesla's shares as it stuck with an Underweight rating and a $120 share price target for the firm in a note released earlier today. In its note, the bank laments "unprecedented" brand damage to Tesla as it outlines that the firm's Q1 deliveries were far below JPMorgan's worst-case estimates. JPMorgan's $120 share price target for Tesla is less than half of the EV firm's current share price, and its note is the latest in a series of bearish coverage for the firm.JPMorgan Wonders If It Underestimated Consumer Reaction To Tesla CarsJPMorgan's Tesla Q1 delivery estimate was the lowest in the market, as it expected the firm to deliver 355,041 vehicles while the market had expected deliveries to sit at 377,592, according to figures compiled by Tesla. Yet, Tesla's Q1 deliveries were 355,041, which is what JPMorgan calls "unprecedented brand damage" to the firm.As per JPMorgan, the Q1 report confirmed: "the unprecedented brand damage we had earlier feared in our March 12 report." In fact, the bank wonders whether it "may have underestimated the degree of consumer reaction" to Tesla's cars in the wake of Musk's political activities. While JPMorgan focuses on brand damage, other analysts have speculated that Tesla's production upgrades, which have reduced output, are also behind some of the firm's delivery woes.Yet, investors' reactions to Musk's government role are clear. Earlier in the week, Tesla's shares gained 5% during the day after reports claimed that Musk would leave his government role to focus efforts on his car company. However, the stock then bled 3.5% in after-market trading after Musk denied the reports. After yesterday's bloodbath, the stock lost 6.6% in premarket trading to extend its woes in 2025 before paring back the losses to 5.6%.JPMorgan also reduced its Q1 EPS estimates for Tesla to $0.36 from $0.40 and its fiscal year EPS estimates to $2.30 from $2.35. The bank adds that the new estimates "are predicated in part on a lower outlook for deliveries (404K in 2Q25, down from 418K prior; 1,715K in FY25, down from 1,775K prior; and 1,975K in FY26, down from 2,025K prior)," noting that it continues to "see large downside to [its] $120 December 2025 price target."While Tesla's shares have taken a beating due to lower vehicle deliveries, the jury is still out on the extent of the impact of President Trump's tariffs on the firm. Trump's tariffs have roiled markets, with futures down by 4% today across key indices in response to China's retaliatory tariffs. However, analysts have maintained that Tesla's shares are a standout in terms of being insulated from tariff impact. Yet, the firm's unsigned letter to the US Trade Representative and Musk's comments have indicated that it will experience some headwinds nevertheless.Other analysts have stressed that investors need to consider Tesla's assisted driving platform, FSD, and its humanoid robots when evaluating the firm's long term performance. Yet, some have questioned whether Tesla will be able to sustain high FSD subscription prices given competition in the assisted and autonomous driving market which has seen rival car companies offer solutions as a add-on to their cars.Deal of the Day