Mizuho Adjusts Tesla Price Target but Maintains Buy Rating Amid EV Market Challenges
Mizuho analyst Vijay Rakesh reduced Tesla's price target from $485 to $475 while reaffirming a Buy rating, citing near-term headwinds in the battery electric vehicle sector. Subsidy cuts in key markets like the U.S. and China—which contributed 37% and 34% of Q3 sales, respectively—are expected to pressure performance. Rakesh projects 2026-2027 deliveries at 1.75M and 2M units, below consensus estimates.
Despite Tesla's modest 3% YTD gain, bulls remain focused on non-EV opportunities like robotaxis and Optimus robots. The report underscores a divergence between long-term Optimism and immediate challenges, including margin compression and intensifying competition.