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Investing.com - Mizuho has reduced its price target on Tesla (NASDAQ:TSLA) to $475.00 from $485.00 while maintaining an Outperform rating on the stock. Tesla currently trades at $417.78, with a price-to-earnings ratio of 288.3, significantly above industry averages. InvestingPro analysis indicates Tesla appears overvalued compared to its Fair Value estimate.
The adjustment comes as Mizuho anticipates potential headwinds for battery electric vehicles (BEVs) in 2026, specifically citing expected subsidy reductions in key markets.
The firm highlighted concerns about U.S. electric vehicle subsidy cuts, with the United States representing approximately 37% of Tesla’s third-quarter 2025 sales, and potential 50% EV subsidy reductions in China, which accounts for 34% of the company’s sales in the same period.
Mizuho has adjusted its delivery estimates for Tesla to 1.75 million vehicles in 2026 and 2.00 million in 2027, slightly below consensus expectations of 1.82 million and 2.15 million, respectively.
Despite near-term challenges, Mizuho identified several long-term growth drivers for Tesla, including FSD v14 adoption for autonomous driving, robotaxi launches, and humanoid robots, which it expects to contribute to the company’s strength through 2027.
In other recent news, Tesla has been granted a permit to operate as a transportation network company in Arizona, according to the state’s Department of Transportation. This permit allows Tesla to provide ride-hailing services under Arizona state regulations. Meanwhile, the Dutch vehicle authority RDW has announced that it has not yet committed to approving Tesla’s Full Self-Driving software. The RDW expects to make a decision in February, contingent on Tesla demonstrating that the technology meets necessary safety standards.
In addition, Piper Sandler has maintained its Overweight rating and $500 price target for Tesla following a visit to the company’s Fremont facility. The firm noted that Tesla’s latest Full Self-Driving software version 14 was "truly impressive," describing it as potentially more adept at driving than the average American. Furthermore, a senior Tesla executive has been invited to testify at a Senate hearing alongside CEOs from General Motors, Ford, and Stellantis. The hearing will focus on auto regulations and their impact on vehicle prices.
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