JPMorgan Just Hit 'Delete' On Tesla And Rivian

The EV party may still be raging on Wall Street, but JPMorgan just showed up to shut it down.

In a bold call that's sure to spark debate, JPMorgan analyst Ryan Brinkman just named both Tesla Inc TSLA and Rivian Automotive Inc RIVN as top short ideas for the second half of 2025.

His rationale? Sky-high valuations, shrinking subsidies, and a growing disconnect between expectations and reality.

Tesla's Valuation Is In Overdrive

Let's start with Tesla — the undisputed king of electric dreams. Trading at 142x forward earnings, Tesla's valuation towers over the rest of the so-called Magnificent 7, which average just 25.2x. That multiple might be easier to swallow if earnings were growing.

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But JPMorgan is forecasting a third straight year of EPS declines, thanks in part to thinner margins, reduced government subsidies, and a robotaxi moonshot that Brinkman says is unlikely to deliver — literally or figuratively — due to a "lack of sensor redundancy."

In other words: Tesla's autopilot isn't ready, and neither is its valuation.

Rivian's Burn Rate Hits A Wall

Then there's Rivian, trading just above $13, with cash burn still off the charts. Brinkman doesn't mince words here either: slashed EV subsidies and rising tariffs could cripple Rivian's ability to trim its massive EBITDA losses and free cash outflows. For a company still trying to scale, that's like hiking uphill with your battery pack unplugged.

JPMorgan's call reflects a growing concern: the EV boom has hit an economic speed bump, with government support fading and competition intensifying. That doesn't mean the long-term EV story is dead – but it does suggest investors may be paying 2030 prices for 2025 problems.

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