Mizuho maintains Tesla stock outperform with $515 target

Mizuho (NYSE:MFG)’s reaffirmation of the Outperform rating and price target reflects their confidence in Tesla (NASDAQ:TSLA)’s position in the market, especially as the leading electric vehicle supplier in the U.S. The firm believes that Tesla is well-equipped to navigate the potential loss of tax credits and tariffs, with the Cybertruck and Optimus as long-term growth drivers. Nevertheless, the analyst notes that competition in China continues to pose a significant challenge for Tesla. InvestingPro data indicates that Tesla maintains strong financial health with more cash than debt on its balance sheet and a current ratio of 1.84. For deeper insights into Tesla’s valuation and 20+ additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. InvestingPro data indicates that Tesla maintains strong financial health with more cash than debt on its balance sheet and a current ratio of 1.84. For deeper insights into Tesla’s valuation and 20+ additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Mizuho’s reaffirmation of the Outperform rating and price target reflects their confidence in Tesla’s position in the market, especially as the leading electric vehicle supplier in the U.S. The firm believes that Tesla is well-equipped to navigate the potential loss of tax credits and tariffs, with the Cybertruck and Optimus as long-term growth drivers. Nevertheless, the analyst notes that competition in China continues to pose a significant challenge for Tesla. InvestingPro data indicates that Tesla maintains strong financial health with more cash than debt on its balance sheet and a current ratio of 1.84. For deeper insights into Tesla’s valuation and 20+ additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The industry outlook for electric vehicle sales in 2025 from IHS Markit has been revised upward to a 27% year-over-year increase, which is significantly higher than Mizuho’s initial projection of an 8% increase. The firm acknowledges potential challenges in the market outside of China, including the loss of tax credits and tariffs in the United States and Europe, which could impact demand.

Mizuho’s reaffirmation of the Outperform rating and price target reflects their confidence in Tesla’s position in the market, especially as the leading electric vehicle supplier in the U.S. The firm believes that Tesla is well-equipped to navigate the potential loss of tax credits and tariffs, with the Cybertruck and Optimus as long-term growth drivers. Nevertheless, the analyst notes that competition in China continues to pose a significant challenge for Tesla.

In other recent news, Tesla has reported its fourth-quarter and full-year financials for 2024, revealing an annual revenue of $97.15 billion. Despite falling short of analyst forecasts with a gross margin of 18.23%, Tesla maintains strong financials with over $2 billion in free cash flow. Analyst firms including RBC Capital, TD Cowen, Stifel, Canaccord Genuity, and Piper Sandler have provided recent insights, with price targets ranging from $180 to $500.

Tesla’s advancements in Full Self-Driving (FSD) technology and the anticipated deployment of unsupervised vehicles in Austin were highlighted by several firms. The company’s expansion into robotics, particularly with the Optimus project, is also viewed as a potential growth catalyst.

Tesla continues to face challenges, including a complaint from the Union of Swedish Electricians over alleged unauthorized electrical work at its charging stations, and challenging the European Union’s tariffs on China-made electric vehicles. These recent developments provide a snapshot of Tesla’s current activities and market position.

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