Tesla’s stock price target has been cut by several Wall Street firms due to the negative impact of tariffs on its business. The electric vehicle maker received three price target cuts since Wednesday, all predicting that higher costs due to tariffs will weigh on the company.
The added headwind of waning consumer demand for Teslas, particularly due to Elon Musk’s polarization, could limit the company’s ability to raise its prices despite the higher input costs. This is evident in Mizuho’s report, which estimates that a 1% increase in car prices would lower sales volumes by the same amount.
Tesla faces increased competition from China and Europe, which could weigh on its market share. The firm has received three price target cuts since Wednesday, all predicting that higher costs due to tariffs will weigh on the business. Shares of Tesla declined 11% on Thursday as investors focused on the sky-high 145% tariff on goods from China.
The added pressure comes as waning consumer demand for Teslas could limit the company’s ability to raise its prices despite the higher input costs. Mizuho lowered its full-year 2025 revenue estimate for Tesla by $7 billion to $101.03 billion and said it expects the company to sell 1.66 million units this year, which would represent a 7% decline from 2024.
Other firms have also made similar predictions. Goldman Sachs reduced its price target from $275 to $260, citing a slowdown in the US economy and weaker consumer demand. UBS lowered its price target from $225 to $190, saying that Tesla’s earnings power is too high and could face negative revisions post 1Q25 results.
Tesla’s exposure to “AI-related efforts” could be a positive driver for the stock price, according to Goldman Sachs. However, the firm rates Tesla at “Neutral”.
Source: https://www.businessinsider.com/tesla-stock-price-target-cuts-from-wall-street-tariffs-demand-2025-4