Tesla Faces Turbulence as Wall Street Slashes Price Targets Amid Political and Market Challenges

Recently, Tesla has encountered a series of challenges as several major Wall Street investment banks have revised their target prices downward, with the company's shares facing significant selling pressure. The latest figures show Tesla's stock priced at $238, almost halved from its peak of $488 in December of last year. Year-to-date, the stock has seen a drop close to 40%.

Mizuho analysts recently lowered Tesla's target price from $515 to $430 in a report, citing uncertainties regarding tariffs that have resulted in weak demand. Mizuho now expects Tesla to deliver 1.8 million cars this year and 2.3 million in 2026, down from previous estimates of 2.3 million and 2.9 million, respectively. The firm also anticipates that Tesla's February sales might underperform the broader automotive market, particularly in the U.S., Europe, and China.

Part of Tesla's sales issues can also be attributed to deteriorating geopolitical conditions and diminished brand recognition. CEO Elon Musk's deep engagement in U.S. politics, along with recent protests and reports of sabotage targeting the company, have sparked concerns about the potential impact on Tesla's sales. Additionally, in China, Tesla faces stiff competition, with the updated Model Y falling short of expectations in demand.

The price target set by Mizuho is notably higher compared to the consensus target price of approximately $367 tracked by financial technology provider Visible Alpha's analysts. Last week, analysts from several financial institutions further reduced Tesla's target prices, with warnings of considerable downside risks remaining.

In a significant move, Danish pension fund Akademiker Pension recently announced that it has added Tesla to its "investment blacklist" and will sell off its remaining 200 shares of the company. The fund will also prevent its fund managers and external partners from purchasing Tesla shares in the future. The fund, at its peak, held over 300 million Danish kroner worth of Tesla stock (approximately 3.17 billion RMB).

With assets under management amounting to $20 billion, Akademiker Pension is renowned globally for its focus on environmentally friendly and sustainable investments. The fund's decision, as explained by CEO Jens Munch Holst, was based on three critical factors: Tesla's suppression of workers' rights advocacy, governance issues, and Musk's involvement in spreading misinformation through his political endeavors.