The firm slashed its price target to $29 from $44 on the stock, though the price target is still more than 50% higher than the stock's current price.
SolarCity is having trouble attracting new investors, as the company has launched and canceled programs and altered its accounting methods, JPMorgan wrote in a note, according to MarketWatch.
Additionally, some of SolarCity's lower-income customers could be at risk of "slow-pay or default in the event of an economic downturn," the firm continued.
Other risks include the possibility that lower costs of solar energy could result in national and regional solar leasing companies losing share to local contractors, JPMorgan noted, MarketWatch reports.
Nevada recently changed its net metering system to include lower credits for surplus energy and higher fees to solar-power consumers, which also "create headline risk," according to the analysts.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
SolarCity's weaknesses include its generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: SCTY
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.SCTY data by YCharts