Tesla (NASDAQ: TSLA) stock garnered attention after Mizuho lowered its price target.
Mizuho Securities analysts have taken a bearish stance on the electric vehicle (EV) giant, downgrading Tesla (NASDAQ: TSLA) stock and issuing a downward revision to its price target.
The downgrade from Mizuho sees Tesla’s price target plummet from $270 per share to $195, representing a potential upside of 14.2% compared to the stock’s prior closing price. This adjustment places the target below the consensus analyst price forecast of $209.15 per share, signaling a cautious outlook for the EV giant’s performance in the near term.
Furthermore, with the price cut, Mizuho has shifted its rating on TSLA stock from “Buy” to “Neutral.” It’s worth noting that the analyst consensus rating for TSLA shares leans towards a “reduce” stance based on 32 opinions.
Analyzing the TSLA Stock Downgrade: Key Insights
This shift in perspective extends beyond Tesla, as Mizuho also downgraded shares of Rivian (RIVN) and Nio (NIO) from “buy” to “neutral.”
The decision to downgrade Tesla and other EV stocks comes amid concerns raised by Mizuho regarding near-term EV demand and tightening liquidity, which will pose challenges for the sector leading up to 2025.
In a note to clients obtained by Investing.com, Mizuho articulated its position, stating,
“While we remain constructive on the broader EV landscape with the LT trend to electrification, near-term EV demand and tightening liquidity are creating challenges into 2025E.”
Tesla (NASDAQ: TSLA) Stock Price Action
TSLA stock rose 1.05% to close at $172.63 on Monday. The traders had exchanged hands with 74,228,616 (74.22 million) shares compared to the average daily trading volume of 103.21 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
