The second half of 2025 is shaping up to be anything but predictable.
Economic uncertainty, sticky inflation, and a tug-of-war between bulls and bears are keeping investors on edge. And while many on Wall Street are hunting for the next big upside — JPMorgan is thinking differently.
The global investment bank has just revealed its top short ideas for the rest of 2025 — and some of the names may surprise you, including Tesla, which has long been a Wall Street favorite.
So, what’s JPMorgan seeing that others aren’t?
In this blog, we’ll break down:
- Why shorting is back on the table for hedge funds and institutions
- JPMorgan’s most compelling short targets
- Why Tesla made the list
- And how everyday investors can respond smartly — without panic
Let’s get into it.
📉 First — What Does “Shorting” a Stock Mean?
Before we dive into JPMorgan’s picks, let’s make sure we’re clear on what shorting actually is.
To “short” a stock means you’re betting it will go down in value.
How it works:
- You borrow shares of a stock.
- You sell them at the current price.
- If the stock drops, you buy them back cheaper, return the shares, and pocket the difference.
But if the stock goes up? You lose money — potentially a lot.
It’s risky. It’s bold. And it’s usually reserved for institutions with deep pockets and high conviction.
🧠 Why JPMorgan Is Shorting Stocks in 2025
JPMorgan reveals its top short ideas for the second half of 2025 — including Tesla, Rivian, Beyond Meat, and more. Discover why analysts are bearish, what it means for your portfolio, and how to respond smartly as an investor.
JPMorgan analysts say this market is ripe for recalibration. Several high-flying stocks, especially in tech and consumer sectors, are:
- Overvalued based on fundamentals
- Pricing in unrealistic growth
- Vulnerable to interest rate changes, weak consumer demand, and regulatory headwinds
According to JPMorgan, we’re in a market where selective shorting can generate serious alpha — especially in names that have run too far, too fast.
🔻 JPMorgan’s Top Short Ideas for the Second Half of 2025
Let’s look at the key companies JPMorgan believes are due for a correction — and why.
❌ 1. Tesla (TSLA)
Yes, Tesla. The golden child of growth stocks is now on JPMorgan’s watchlist for a downside play.
Why JPMorgan Is Bearish:
- Valuation far exceeds fundamentals: Despite slowing delivery growth, Tesla still trades at 60x forward earnings.
- Margin compression: Price cuts to stay competitive have eroded profitability.
- EV competition: BYD, Ford, Hyundai, and even Apple (Project Titan) are closing the gap.
- Regulatory pressure: The U.S. and EU are scrutinizing Tesla’s self-driving claims and energy division.
- China exposure: Geopolitical tensions and CATL dependence add supply chain risk.
JPMorgan’s Call:
Price target revised down to $150 — roughly 30% below current levels.
❌ 2. Beyond Meat (BYND)
Plant-based hype is fading.
Why JPMorgan Is Bearish:
- Sales have declined for six consecutive quarters
- Consumers are switching back to traditional meat during inflationary times
- Partnerships with fast food chains (McDonald’s, KFC) underperforming
- Balance sheet stress: cash burn remains unsustainable
JPMorgan’s Call:
BYND is a potential zero if cost structures don’t improve within 12–18 months.
❌ 3. Rivian (RIVN)
The EV startup dream faces a hard reality.
Why JPMorgan Is Bearish:
- Deliveries are far below projections
- Operating losses widening despite massive capital injection
- EV sector overcrowded with better-capitalized competitors
- No proven path to profitability until 2027 or later
JPMorgan’s Call:
Shorting Rivian as a high-risk, low-return player in the EV space.
❌ 4. Peloton (PTON)
Remember when Peloton bikes were the future of fitness? That moment may be over.
Why JPMorgan Is Bearish:
- Declining subscriptions and hardware sales
- Supply chain costs still hurting margins
- Increased competition from Apple Fitness+ and lower-cost smart fitness tech
- Brand damaged after product recalls and ad controversies
JPMorgan’s Call:
Peloton could see another 40–60% downside in a bearish market.
❌ 5. Lucid Motors (LCID)
Another EV name that’s struggling to find its place.
Why JPMorgan Is Bearish:
- Deliveries still far from break-even scale
- Cash burn remains a major concern
- Saudi fund support is propping it up — but not forever
- High-end EV market is niche and crowded
JPMorgan’s Call:
Lucid’s stock may remain under pressure into 2026 unless there’s a radical business model shift.
💡 What Should Retail Investors Do?
If you’re reading this and own shares of any of the companies above — don’t panic. Short calls don’t mean automatic disaster.
Here’s how to play it smart:
✅ 1. Revisit Your Thesis
Ask yourself:
- Why did I buy this stock?
- Has the company hit or missed key milestones?
- Are fundamentals improving or deteriorating?
If your reasons no longer hold — it may be time to rebalance.
✅ 2. Use Stop Losses
Especially in volatile names like Tesla or Rivian. Protecting capital is just as important as generating returns.
✅ 3. Diversify Exposure
Don’t let one or two high-risk stocks dominate your portfolio. Add balance with:
- Dividend-paying stocks
- Broad ETFs like VTI or VOO
- Defensive sectors like healthcare, utilities, and infrastructure
✅ 4. Consider Inverse ETFs or Options
Want to hedge without selling?
- SARK: An inverse ARK ETF (benefits if growth stocks fall)
- Put options: Can limit downside in specific names
- Bear call spreads: Risk-defined trades for seasoned investors
✅ 5. Stay Informed — Not Emotional
JPMorgan’s short ideas are based on deep research and risk modeling, not Twitter buzz or Reddit hype.
They don’t get it right 100% of the time — but when major institutions start betting against hyped names, it’s worth listening.
📊 The Bigger Picture
Short selling isn’t about negativity — it’s about valuation discipline.
In 2021 and 2022, we saw meme stocks and speculative tech skyrocket based on story, not substance.
Now in 2025, as interest rates stabilize and earnings become the main driver, reality is setting in — and companies without profitability, pricing power, or a clear growth path are being re-evaluated.
This is a natural market cycle — and shorting is simply one way institutional investors manage risk and seek alpha.
📌 TL;DR – JPMorgan’s Top Short Picks for H2 2025
| Ticker | Company | Short Thesis |
|---|---|---|
| TSLA | Tesla | Overvalued, margin pressure, competition rising |
| BYND | Beyond Meat | Demand drop, cash burn, poor retail performance |
| RIVN | Rivian | Slow delivery, widening losses |
| PTON | Peloton | Brand damage, subscriber decline |
| LCID | Lucid Motors | Weak sales, high-end EV niche risk |
🧭 Final Thoughts: Is It Time to Short?
For retail investors, shorting individual stocks can be dangerous without experience. But you don’t need to short to benefit from JPMorgan’s insights.
Use their ideas as a reality check:
- Reassess your portfolio
- Reduce overexposure to hype names
- Focus on quality, fundamentals, and long-term trends
Because at the end of the day, surviving market cycles isn’t about being bullish or bearish — it’s about being balanced and informed.
Also Check This Post
Goldman’s Top Trades for This Upcoming Earnings Season: What You Need to Know