Tesla Stock Takes Another Hit As Mizuho Slashes Price Target
Tesla’s stock is facing yet another tough week, with shares dropping nearly 5% to $238 on Monday. This comes as a stark contrast to the broader market, which is showing signs of recovery. The S&P 500, for example, gained 0.7% on the same day, building on last week’s rebound. But Tesla? It was the worst-performing stock among companies valued over $100 billion, according to FactSet data.
So, what’s driving this decline? One major factor is Mizuho’s latest move. The financial firm has significantly slashed its price target for Tesla, cutting it by a whopping $85 down to $430. But that’s not all—Mizuho also revised its 2025 vehicle delivery forecast, reducing it from 2.3 million to just 1.8 million units. That’s more than a 20% cut, falling well below industry expectations of 2 million deliveries. This downgrade comes as analysts cite weakening brand perception in both the U.S. and Europe, deteriorating geopolitics, and increasing competition in China as key reasons for Tesla’s struggles.
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The numbers paint an even bleaker picture. Tesla’s U.S. sales in February declined by 2% year-over-year, while the overall EV market in the country grew by 16%. In China, things were even worse—Tesla’s sales plummeted by 49% while the country’s EV market surged by 85%. And in Germany, Tesla’s sales tanked by 76% as the broader EV sector expanded by 31%. These figures highlight just how much Tesla is struggling to maintain its market dominance.
Year-to-date, Tesla’s stock is down a staggering 41%, making it one of the worst-performing companies on the S&P 500. And it’s not just Mizuho that’s losing confidence—big names like Goldman Sachs, JPMorgan, and UBS have also cut their forecasts for Tesla’s future performance. JPMorgan analysts even went as far as to say that they can’t recall another instance in automotive history where a brand has lost value so quickly.
One of the major concerns for investors is Elon Musk’s increasing political entanglements. While Musk is seen as a close ally of former President Donald Trump, Trump’s aggressive tariff policies are creating serious headaches for Tesla. In fact, Tesla recently submitted a letter to the U.S. Trade Representative, urging the administration to reconsider its approach to tariffs, emphasizing that certain key parts are impossible to source domestically. This move signals the company’s growing concern over how these economic policies could impact its bottom line.
Despite all these challenges, Tesla stock is still up 7% from last Monday when it suffered its worst single-day drop in over four years. But the long-term outlook remains shaky, and investors are keeping a close eye on how Musk navigates these turbulent waters. His net worth, currently sitting at $329 billion, is still the highest in the world, but it has dropped significantly from its $464 billion peak in December when Tesla shares were soaring at around $480.
With competition intensifying and brand perception on a downward trend, Tesla faces an uphill battle in the coming months. Will Musk be able to turn things around? Only time will tell, but for now, Wall Street remains skeptical, and Tesla’s stock continues to feel the pressure.
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