Demand Headwinds Intensify! Another Major Bank Cuts Tesla Target Price Following JPMorgan and Wells Fargo

Published: Mar 21, 2025 09:27 (GMT+8)

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Recently, Tesla has been facing multiple challenges, not only experiencing a significant drop in sales in several key markets but also encountering strong resistance in the US...

Recently, Tesla has been facing multiple challenges, not only experiencing a significant drop in sales in several key markets but also encountering strong resistance in the US... Various major investment banks on Wall Street have been lowering their target prices for Tesla, with Mizuho being the latest to do so.

On Monday, Mizuho analysts cut Tesla's target price from $515 to $430 in a report, citing weak demand for the automaker amid tariff uncertainties.

During Monday's trading session, Tesla's stock price fell by more than 5% to $237.44, nearly halving from its closing high of $479.86 on December 17 last year. By the close, Tesla's stock was down 4.79%, at $238.01. Since the beginning of the year, Tesla's stock has fallen by nearly 40%, significantly underperforming the S&P 500 index.

Mizuho now expects Tesla to deliver 1.8 million units this year and 2.3 million in 2026, lower than the previous estimates of 2.3 million and 2.9 million, respectively.

The bank noted that Tesla's February sales may have underperformed the overall auto market, especially in the US, Europe, and China.

Mizuho analysts stated that Tesla's sales difficulties can partly be attributed to "deteriorating geopolitics" and a decline in brand recognition. Elon Musk, Tesla's CEO, is deeply involved in US politics, having led the Department of Government Efficiency during the Trump administration. Recent protests and reports of vandalism against Tesla have raised concerns that Musk's political activities could harm the company's sales.

Analysts also pointed out that Tesla faces increasing competition in China, and the demand for the updated Model Y is below expectations.

Mizuho's target price is significantly higher than the consensus target price of around $367 tracked by financial technology provider Visible Alpha.

Last week, analysts from Wells Fargo and JPMorgan lowered their target prices for Tesla to $130 and $120, respectively, indicating there is still considerable downside room for the stock.

In a letter to the Office of the US Trade Representative (USTR) last week, Tesla warned that President Trump's trade war could make it a target for retaliatory tariffs, increasing the cost of manufacturing cars in the US.

Note: This news is sourced from cls and translated by SMM

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