Key Takeaways

Tesla ( TSLA ) shares slid Monday as Mizuho analysts trimmed their price target for the stock, pointing to weakening demand and headwinds from China, amid tariff uncertainty .

Mizuho said it now expects Tesla to deliver 1.8 million vehicles this year and 2.3 million in 2026, down from previous estimates of 2.3 million and 2.9 million, respectively. The drop comes as analysts estimate Tesla “significantly underperformed the market” in the U.S. and China last month, as well as in Europe.

Tesla’s struggles can be traced in part to a “deterioration in geopolitics" and brand perception, Mizuho analysts said. Tesla CEO Elon Musk has become heavily involved in U.S. politics, running the Trump administration’s Department of Government Efficiency , with recent protests and reports of vandalism against Tesla vehicles raising concerns Musk's political activities could be hurting sales. The analysts also pointed to growing competition in China from Chinese EV makers, and softer-than-expected demand for Tesla's Model Y refresh.

Mizuho cut its price target from $515 to $430, implying over 80% upside from Monday's intraday price, after Tesla shares cratered over the past two months. That's well above the consensus target of about $367 from analysts tracked by Visible Alpha.

Last week, analysts from Wells Fargo and JPMorgan lowered their price targets to $130 and $120, respectively, suggesting the stock could also have significant room to fall.

Tesla shares were down over 5% intraday Monday to $237.44, having lost about half their value from their Dec. 17 closing peak of $479.86.

Read the original article on Investopedia