Tesla Inc. (NASDAQ: TSLA) received a price target downgrade from Mizuho after reporting disappointing first-quarter results. The brokerage trimmed its target to $325 from $375 while maintaining an Outperform rating, emphasizing long-term confidence in Tesla’s innovation pipeline despite short-term headwinds.
Tesla posted Q1 revenue of $19.3 billion, missing Wall Street expectations by $2.1 billion. Earnings per share landed at $0.27, well below the projected $0.44.
Mizuho noted that while the poor performance was anticipated, the outlook for 2025 deliveries has dimmed, with estimates now 8% lower year-over-year. The company has officially withdrawn its prior annual guidance amid uncertain market dynamics and intensifying competition in China and Europe.
Model Y, Robotaxi Key to Rebound
Despite immediate setbacks, Mizuho remains optimistic about Tesla’s upcoming product releases. Analysts highlighted two critical projects:
- Low-cost Model Y, expected in 1H 2025
- Cybercab autonomous vehicle, targeted for early 2026
These vehicles are central to Tesla’s growth trajectory, particularly in a slowing EV market. While some reports suggest delays to the affordable Model Y, Mizuho believes a mid-2025 release remains plausible, albeit with a more conservative production ramp.
The Cybercab—Tesla’s anticipated robotaxi—also remains on schedule. If successful, it could significantly reshape Tesla’s position in autonomous mobility.
Strategic Product Drivers:
- Model Y (affordable version): Mid-2025 launch
- Cybercab (robotaxi): Early 2026 deployment
- Retooling efforts underway at U.S. Gigafactories
CEO Musk Shifts Focus Back to Tesla
Tesla’s disappointing earnings come amid growing scrutiny of CEO Elon Musk’s dual roles and controversial political involvement. During the Q1 earnings call, Musk announced plans to scale back his governmental engagements starting in May to refocus on leading Tesla operations.
This announcement helped lift investor sentiment. Tesla shares rose modestly in after-hours trading, despite the broader earnings miss.
Tesla continues to face challenges including:
- Weak U.S. and China sales performance
- Brand damage from political controversies
- Pressure from price wars and EV adoption fatigue
Still, Mizuho’s bullish long-term view reflects confidence in Tesla’s capacity to innovate and maintain leadership in the electric vehicle market.
With crucial product launches on the horizon and a recalibrated executive focus, investors are watching closely to see whether Tesla can turn the corner in late 2025.