Analysts Trim Target Prices for Tesla Stock, Citing Tariffs on Auto Industry

Analysts on Thursday reduced the goals for Tesla that tariffs would weaken the broad auto industry.

UBS cut its target price to Tesla (TSLA) to $ 190, guessing that the delivery of the electric car manufacturer’s vehicle would fall 11% in 2025. Mizuho analysts stated that tariffs would increase the prices of Tesla and reduce a demand in advance, making its target price to $ 375. A consensus analyst estimates Tesla’s shares somewhere in the middle, $ 327, or about 30% above the closing price of Thursday, according to the visual alpha.

“While low estimates for 2025 are now more widely expected, we believe that the entire projection of earnings for (Tesla) is very high …” UBS has written in a note on Thursday, saying that shares will be “volatile but downwards.”

Tesla’s shares and comprehensive market have oscillated in recent times amid changes in American trade policy. CEO Elon Musk’s work of reducing government expenses has also affected the carmaker’s stock prices. The stocks ended over 7% on Thursday, but were still more than 40% from a year ago.

Although the Trump administration surpassed tariffs on several American business partners this week, including China’s goods, car batteries and their components, are subject to tariffs of over 100%. Import tax of 25% remains in effect on cars, which will increase prices, stop consumers, and potentially reduce Tesla’s 2025 US revenue by 3.5%, Mizuho estimated.

“While the decrease in mutual tariff helps reduce the recession/helps reduce the risk of destruction, we explain that auto tariff sectors are specific, individual country is not subject to business talks,” said UBS. “In our view, they are likely to remain for the future of the future.”

Trade policies for auto industry can enter ‘new era’

According to UBS analysts, the cost of the sector-specific tariff car will add an average of $ 5,000 and domestic demand up to 9%, who failed in existing 25% tariffs on cars in existing 25% tariffs and import 25% on parts slats to be effective earlier next month. The UBS said that trade policies can enter a “a new era” for the American auto industry.

“There is a possibility of disruption of production … and a chain to be adapted for decades can be supplied,” said UBS.

Tariff General Motors (GM) can reduce the domestic annual revenue of 4% and Rivian Automotive (RIVN) by 3.5%, Mizuho estimated. Both Mizuho and UBS reduced their value targets for GM and Revian stocks with many auto suppliers.

General Motors fell by 4%, and the shares of Rivians declined by 2.6% on Thursday.