Tesla, Rivian, Nio Hit With Downgrades As EV Demand Slows
Mizuho was cautious on the electric vehicle space heading into the year. Continued slowing EV demand trends have shifted the analyst firm to neutral.
Mizuho analyst Vijay Rakesh downgraded Tesla Inc (NASDAQ:TSLA), Rivian Automotive Inc (NASDAQ:RIVN) and NIO Inc – ADR (NYSE:NIO) on Monday, citing weak demand and rising inventories.
Tesla: The Mizuho analyst downgraded Tesla from Buy to Neutral and lowered the price target from $270 to $195 after slashing its revenue and earnings estimates through 2026.
“We see TSLA maintaining strong market share in the global EV space, but we see moderating growth and limited margin leverage at current interest rate levels as headwinds,” Rakesh said in a new note to clients.
Rivian: Mizuho downgraded Rivian from Buy to Neutral and set a price target of $12 as the firm anticipates 2025 deliveries of just 74,500 versus consensus expectations of 83,000.
“We still see RIVN well positioned in the strong SUV/Pickup markets and a push towards profitability, but headwinds remain from slowing EV demand, challenging execution, and elevated cash burn,” the analyst said.
Although Rakesh applauded Rivian for …
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