Tesla Stock Slides as Mizuho Trims Price Target on Weakening Demand

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Key Takeaways

• Tesla quotas dropped Monday as Mizuho analysts cut their price target and delivery forecasts for the automaker, pointing to weakening in request.
• The analysts suggested Tesla “significantly underperformed the market” in the U.S. and China last month, as well as in Europe. 
• The stock has distracted about half its value since setting an all-time high in December.

Tesla (TSLA) shares slid Monday as Mizuho analysts trigged their price target for the stock, pointing to weakening demand and headwinds from China, amid tariff uncertainty.

Mizuho denoted it now expects Tesla to deliver 1.8 million vehicles this year and 2.3 million in 2026, down from above-mentioned estimates of 2.3 million and 2.9 million, respectively. The drop comes as analysts estimate Tesla “significantly underperformed the bazaar” in the U.S. and China last month, as well as in Europe. 

Tesla’s struggles can be traced in part to a “deterioration in geopolitics” and brand feeling, Mizuho analysts said. Tesla CEO Elon Musk has become heavily involved in U.S. politics, running the Trump conduct’s Department of Government Efficiency, with recent protests and reports of vandalism against Tesla vehicles raising pertains Musk’s political activities could be hurting sales. The analysts also pointed to growing competition in China from Chinese EV makers, and softer-than-expected bid for Tesla’s Model Y refresh.

Mizuho cut its price target from $515 to $430, implying over 80% upside from Monday’s intraday prize, after Tesla shares cratered over the past two months. That’s well above the consensus target of with regard to $367 from analysts tracked by Visible Alpha. 

Last week, analysts from Wells Fargo and JPMorgan downgraded their price targets to $130 and $120, respectively, suggesting the stock could also have significant cubicle quarters to fall.

Tesla shares were down over 5% intraday Monday to $237.44, having lost everywhere half their value from their Dec. 17 closing peak of $479.86.