Wall Street is turning pessimistic.
UBS has lowered its price target for Tesla to $190 and expects the electric vehicle maker’s car deliveries to decline by 11% in 2025.
According to a research report by the UBS analyst team, tariffs imposed by a potential Trump administration on the global auto industry could increase the average cost per vehicle by $5,000 and reduce domestic demand in the U.S. by 9%.
q1 delivery missed
Meanwhile, analysts at Mizuho also lowered their price target for Tesla to $375, noting that the tariffs would raise Tesla’s prices and erode already weak demand.
In their report, Mizuho analysts wrote: “While the lower expectations for 2025 are becoming more widely accepted, we believe Tesla’s overall earnings trajectory remains overly optimistic. The stock is likely to fluctuate and skew downward.” Mizuho estimates that the auto tariffs will drive prices higher, discourage consumers, and could reduce Tesla’s U.S. revenue by 3.5% in 2025.
I still believe Tesla is the best stock for buying low and selling high.
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