Tesla (NASDAQ: TSLA) shares tumbled on Monday after analysts at Mizuho cut their price target and delivery forecasts for the electric vehicle (EV) giant, citing declining demand and mounting challenges in key markets. The stock, which has already shed nearly half its value since its all-time high in December, was down over 5% intraday to $237.44.
Tesla’s Market Underperformance Raises Concerns
Mizuho analysts highlighted that Tesla significantly underperformed in the U.S., China, and Europe last month. The firm now expects Tesla to deliver 1.8 million vehicles in 2025 and 2.3 million in 2026, down from previous estimates of 2.3 million and 2.9 million, respectively.
This downward revision reflects growing headwinds from increasing competition in China, tariff uncertainty, and geopolitical tensions that are affecting Tesla’s global sales outlook. Additionally, demand for Tesla’s refreshed Model Y has fallen short of expectations, adding to the company’s struggles.
Elon Musk’s Political Ties Weigh on Brand Perception
Mizuho analysts also pointed to Tesla CEO Elon Musk’s political activities as a potential risk to the company’s brand. Musk, who now leads the Trump administration’s Department of Government Efficiency, has drawn public protests and reports of vandalism targeting Tesla vehicles. These developments have fueled concerns that Tesla’s brand image may be suffering as a result of Musk’s political affiliations.
Mizuho, Wells Fargo, and JPMorgan Cut Price Targets
Mizuho slashed its Tesla price target from $515 to $430, still implying over 80% upside from Monday’s intraday price. However, other firms are taking a more bearish stance. Last week, Wells Fargo and JPMorgan lowered their Tesla price targets to $130 and $120, respectively, indicating a potentially steeper decline ahead for the stock.
Despite the recent downturn, Mizuho’s revised price target remains above the consensus estimate of $367 tracked by Visible Alpha. The divergence among analysts underscores the uncertainty surrounding Tesla’s future performance as it navigates increasing competitive pressures and macroeconomic challenges.
Tesla’s Stock Freefall Continues
Tesla shares have now lost nearly 50% of their value since reaching a peak of $479.86 on December 17, 2024. The sharp decline highlights investor concerns over Tesla’s ability to maintain its dominance in the EV market amid intensifying competition from Chinese automakers and evolving global economic conditions.
As Tesla prepares for its next earnings report and delivery updates, investors will be closely watching whether the company can overcome these hurdles and regain momentum in the coming months.
