Daiwa Capital Markets has lowered its price target on Tesla to $300 from $420, reflecting growing concerns about the company’s profit margins and slowing demand growth in key markets.
In a note to clients, the brokerage said that intensifying competition, particularly in China and Europe, along with price cuts across Tesla’s lineup, are likely to weigh on near-term profitability. Analysts also flagged concerns over the pace of electric vehicle (EV) adoption and consumer sensitivity to higher interest rates, which could impact sales momentum.
Despite the downgrade, Daiwa maintained a neutral rating on the stock, noting that Tesla still holds a strategic edge in areas like battery tech, vertical integration, and its energy storage business. However, the revised price target suggests limited upside from current levels.
The move follows a broader trend of analyst caution on Tesla in recent months, as investors recalibrate expectations amid a more challenging macro backdrop and shifts in the global EV landscape.
