Wall Street continues to sour on Tesla stock with the trade war set to weigh on the EV maker

• Wall Street firms cut Tesla's stock price target due to tariff impacts on its business.
• One bank argued Tesla will have little room to raise car prices amid high tariffs.
• Tesla also faces increased competition from China and Europe, which could weigh on its market share.

Wall Street's view of Tesla stock is dimming further due to the negative impact of tariffs.

The electric vehicle maker has received three price target cuts from Wall Street firms since Wednesday, all predicting that higher costs due to tariffs will weigh on the business.

Shares of Tesla declined 11% on Thursday as investors focused on the sky-high 145% tariff on goods from China. Shares of the automaker are down 40% year-to-date.

The added headwind of waning consumer demand for Teslas due to Elon Musk's polarization could also limit the company's ability to raise its prices despite the higher input costs.

Here's what Wall Street is saying about the stock and where it sees the shares headed.

Mizuho price target: $430 → $375

Mizuho said that Trump's 90-day tariff pause announced on Wednesday doesn't apply to autos and auto parts, which implies continued uncertainty for the car industry.

The firm estimates that the tariff impact could lower Tesla's earnings per share by about $0.08, or about 3%. The earnings drag could worsen for Tesla "given likely higher tariffs on batteries/battery materials imported from China."

Higher prices should also hit consumer demand, leading to lower car sales.

"We further assume consumer demand for new autos proves highly elastic," Mizuho said, adding that a 1% increase in car prices would lower sales volumes by the same amount.

Finally, the firm said a ramp in car production by competitors in China and Europe could eat into Tesla's market share.

Mizuho lowered its full-year 2025 revenue estimate for Tesla by $7 billion to $101.03 billion and said it expects the company to sell 1.66 million units this year, which would represent a 7% decline from 2024.

Mizuho rates Tesla at "Outperform."

Goldman Sachs price target: $275 → $260

Goldman Sachs said a slowdown in the US economy should also slow down the US auto sector.

"We're lowering our US auto sales and global auto production forecasts to reflect tariffs and weaker consumer demand," Goldman Sachs said.

The firm said that the slowdown, combined with an average estimated car price increase of about $2,000 to $4,000, will be a double whammy for the sector.

"We don't expect Tesla to meaningfully raise net prices in the US given its mostly US supply chain and due to slower demand," Goldman said.

Despite the macro threats to Tesla's underlying car business, the company's exposure to "AI-related efforts" could be a positive driver for the stock price.

Goldman Sachs rates Tesla at "Neutral."

UBS price target: $225 → $190

UBS said that Tesla's lower vehicle sales estimates are largely priced into the stock following its lower-than-expected first-quarter deliveries.

However, the firm believes it could still get worse for Tesla's earnings power going forward.

"We believe the whole trajectory of earnings for TSLA remains too high and could face negative revisions post 1Q25 results," UBS said.

The firm said tariffs on battery-related imports from China is also a risk for Tesla's fast-growing energy business.

UBS rates Tesla at "Sell."