Mizuho analyst Vijay Rakesh trimmed his price target on Tesla (TSLA) this morning, asserting that the EV giant is headed for a rough sales patch in 2025.
In February, the electric vehicle maker underperformed the broader market in terms of sales across all three of its key markets: China, the European Union, and the United States, he told clients in a research note on Monday, March 17.
Weakness in Germany was particularly pronounced, with sales declining by 76% in the world’s largest EV market, the analyst added.
Tesla stock is currently trading about 41% down in the year to date.
Why Has Tesla Stock Plummeted in 2025?
Rakesh attributed some of the year-to-date weakness in Tesla shares to President Donald Trump’s tariffs and the related fears of a recession ahead.
The automotive and clean energy giant itself agreed last week that retaliatory tariffs on U.S. goods could weigh on its business in 2025.
Additionally, billionaire Elon Musk’s ties with the new administration were hurting TSLA’s brand perception across key markets as well, the Mizuho analyst argued in his report.
Other reasons cited for a continued decline in Tesla stock include rising competition particularly from Chinese rivals and “softer-than-expected demand for the Model Y refresh.”
Tesla Stock Could Soar 80% From Current Levels
While the Mizuho analyst lowered his price target on TSLA stock from $515 to $430 on Monday, investors should note that his downwardly revised price target still represents potential upside of nearly 80% from current levels.
In fact, he kept his “Outperform” rating on the EV stock as well, indicating confidence that buying it on the recent pullback could generate massive returns as we advance through the remainder of 2025.
Rakesh’s current price objective suggests he expects the tariffs and deteriorating brand perception driven selloff in Tesla shares to prove only temporary.
That’s because Tesla continues to be a leader in electric and autonomous vehicles, and could unlock upside in its stock price on the back of its Cybercab and Optimus initiatives as well, he noted.
TSLA Hasn’t Lost its Mojo With Wall Street
Despite a massive rout in Tesla stock, the majority of Wall Street remains constructive on TSLA.
The consensus rating on the EV company currently sits at “Hold” only, but the mean target of about $346 translates to potential upside of about 45% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.