Tesla’s Price Target Lowered as Ambiguity Weights on the Stock

Tesla's stock price (NASDAQ: TSLA) has been hit in recent times with a wave of bearish sentiment, and despite Wednesday's 22% rally, Thursday's 7.3% fade came alongside a downward analyst price target.

This notable surge in volatility comes as the broader industry faces ongoing tariff-related uncertainties that do not spare automotive stocks. Market reactions to the 90-day pause on reciprocal tariffs which does not extend to auto parts, causes continued uncertainty.

Despite the reduction in Tesla's price target from $430 to $375, Mizuho has maintained an Outperform rating on the shares. The cut in estimates across the automotive sector reflects the anticipated negative impacts due to tariff exclusions. This ongoing economic ambiguity may well continue to influence Tesla's stock price and that of its industry counterparts in the near to medium term.

Despite a 33.45% decline year to date, Tesla continues to hold a market cap just shy of $800 billion, with almost $400 billion wiped off since the start of 2025. The stock has a volatile trading range, with a 52-week low of $138.80 and a 52-week high of $488.54.

Zooming out to the 1 year performance, and the picture stands in stark contrast, with TSLA remaining 44% in the green over the period. Recently, the opening price was tagged at $260, with intraday fluctuations reaching a low and high of $239.33 and $262.49 respectively.

Currently, the average price target on the street stands at $313.96, continuing to reflect perceived upside from current price action.

Tesla's revised price target by Mizuho, while lower, still portrays a conviction in the company's long-term growth trajectory amidst a challenging tariff landscape. With a maintained Outperform rating, the firm still see upside potential, despite a narrowing target. It should be noted that analysts, in the wake of all the tariff changes, reversals, pauses and such, have not necessarily re-priced all of those expectations. Time will tell whether the approach and expectations from the overall market's analyst community shifts in the weeks ahead.