Tesla Inc. (NASDAQ: TSLA) shares came under pressure after Mizuho analysts lowered their price target on the EV giant from $515 to $430 per share. The downgrade reflects growing concerns over tariff-related headwinds and mounting competition from Chinese electric vehicle (EV) makers, which are rapidly gaining market share.
Tariff Concerns Cloud Tesla’s Outlook
Mizuho’s revised price target comes as the U.S. and China escalate trade tensions, potentially leading to higher tariffs on imported and exported EVs. With Tesla’s Gigafactory in Shanghai playing a key role in its global production, increased tariffs could significantly impact profit margins and delivery costs.
Moreover, the European Union’s probe into Chinese EV subsidies has further fueled concerns that retaliatory tariffs could disrupt Tesla’s operations in key international markets.
Chinese EV Makers Intensify the Competition
Tesla is also facing mounting pressure from Chinese EV giants such as BYD (OTC: BYDDY), NIO (NYSE: NIO), and XPeng (NYSE: XPEV). These companies are expanding aggressively, offering affordable and tech-laden EVs that appeal to price-conscious consumers.
BYD, in particular, has overtaken Tesla in global EV sales, highlighting the increasing dominance of Chinese automakers. The fierce price competition has forced Tesla to cut prices multiple times, squeezing its margins and raising concerns about profitability.
Wall Street Remains Divided
While Mizuho’s target cut reflects a cautious outlook, some analysts remain optimistic about Tesla’s long-term potential. The company’s continued innovation in autonomous driving, energy storage, and its dominance in North American EV sales could help it maintain a competitive edge.
Investor Sentiment in Focus
Following Mizuho’s downgrade, investors are closely watching how Tesla navigates the tariff landscape and responds to rising Chinese competition. The company’s ability to expand its global production capacity and sustain its margins will be critical in determining its future stock performance.
