TradingKey - Tesla's stock continues to struggle, with multiple Wall Street institutions lowering their target prices.
On Monday, Tesla(TSLA)'s stock weakened, dropping over 5% intraday before narrowing the loss to 4.8%, closing at $238. Year-to-date, the stock has fallen 37%, significantly underperforming the S&P 500's 3% decline.
Tesla Stock Price Chart, Source: TradingView.
Tesla CEO Elon Musk's involvement in the Trump administration's Government Efficiency Department has sparked protests and boycotts against Tesla, heightening investor concerns about its future.
Additionally, the U.S. government's tariff war has also impacted Tesla. Last week, in a letter to the U.S. Trade Representative (USTR), the company warned that President Trump's trade war could make it a target for retaliatory tariffs and increase the cost of manufacturing cars in the U.S.
Mizuho analysts believe that demand for the automaker remains weak amid tariff uncertainties. They expect Tesla to deliver 1.8 million vehicles this year, down from the previous estimate of 2.3 million, and 2.3 million in 2026, down from the expected 2.9 million. As a result, Mizuho lowered Tesla's target price from $515 to $430.
Previously, analysts at Wells Fargo and JPMorgan had already cut Tesla's target price to $130 and $120, respectively, implying a potential downside of 43%-48% from current levels.
