Tesla Inc. (NASDAQ:TSLA) shares plunged nearly 5% Monday after Mizuho analysts slashed their price target for the electric vehicle maker, prompting economist Peter Schiff to question the market’s reaction.
What Happened: Mizuho cut its Tesla price target from $515 to $430, sending the stock down nearly 5% to close around $238. “But why is this even bad news if the lowered price target is still 80% higher than today’s closing price?” Schiff wrote on X.
Mizuho cited weakening demand as it reduced delivery forecasts to 1.8 million vehicles this year and 2.3 million in 2026, down from previous estimates of 2.3 million and 2.9 million, reported Investopedia. Analysts noted Tesla “significantly underperformed the market” across the U.S., China, and Europe last month.
The automaker’s challenges stem partly from “deterioration in geopolitics” and shifting brand perception, according to Mizuho. Tesla CEO Elon Musk‘s role in leading President Donald Trump administration’s Department of Government Efficiency has sparked protests and reports of vandalism against Tesla vehicles and showrooms nationwide.
See Also: Warren Buffett Dumped Nearly 70% Of Apple Shares, But Its Price-To-Sales Ratio Remains Elevated At 8.2x, Warns This Market Analyst
Why It Matters: Wedbush Securities analyst Dan Ives recently highlighted investor frustration, telling Quartz that “Tesla investors are seeing patience wear thin as Musk is not reading the room,” noting there’s been “little to no sign of Musk at any Tesla factory or manufacturing facility in the last two months.”
Ross Gerber, a longtime Tesla investor who has grown increasingly critical, shared footage Sunday of protesters outside a Tesla store in Santa Monica. The video concludes with his 9-year-old child saying, “I’m glad we don’t have a Tesla.”
Tesla shares have lost about half their value since their December peak of $479.86. Tesla’s consensus price target is $318.22 from 30 analysts, ranging from $550 to $24.86. The latest ratings from Canaccord Genuity, Mizuho, and Wells Fargo average $321.33, implying a 36.1% upside.
Benzinga Edge Rankings evaluates stocks based on momentum, value, growth, quality, and price trends across different timeframes. Here’s how Tesla scores.
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