Analysts Cut Tesla Price Targets as Tariffs Reshape Auto Industry Outlook

UBS and Mizuho lower Tesla projections, citing rising costs, reduced demand, and competitive pressures in key markets.

UBS reduced Tesla's price target from $225 to $190 and maintained a Sell rating, forecasting an 11% drop in vehicle deliveries for 2025.
Mizuho lowered Tesla's price target from $430 to $375 and cut delivery estimates for 2025 from 1.82 million units to 1.66 million, while maintaining an Outperform rating.
U.S. tariffs on auto imports and components are expected to add $5,000 to vehicle costs on average and reduce domestic demand by 9%, according to UBS.
Despite the downward revisions, Tesla remains the leader in the U.S. EV market but faces increasing competition in Europe and China.
General Motors and Nio also saw price target reductions, with analysts warning of revenue declines due to elevated trade costs and global market challenges.