Tesla’s (TSLA) Q1 earnings landed with a thud, and Wall Street isn’t sugarcoating it. Revenue slid 9% year-over-year to $19.3 billion. The EV giant’s net income plunged 80% to just $409 million. That Q1 miss, paired with growing tariff risks, has analysts racing to slash price targets and recalibrate expectations.
Analysts Cut Tesla Price Targets as Earnings Miss Sparks Doubts
CFRA Research led the charge. They downgraded Tesla to “Hold” and cut their price target to $260. Their reasoning was blunt. Tesla’s EPS, they warned, “may not return to 2023 levels until at least 2027.” This signals more than just a soft patch—it suggests a long recovery ahead as rising costs and slowing demand bite into margins.
Goldman Sachs wasn’t far behind. They trimmed their target to $235. While they didn’t downgrade Tesla, they flagged “near-term risks to automotive gross margins” as the key issue. Yet Goldman kept its broader outlook intact, pointing to Tesla’s leadership in full self-driving as a future growth catalyst. But that future feels further away with the numbers Tesla just posted.
Tariffs Add Fuel to Tesla’s Headaches
Tariffs are the elephant in the room that analysts can’t ignore. RBC Capital Markets cut its price target to $307, specifically citing tariff impacts. Analyst Tom Narayan warned that higher trade barriers could “pressure Tesla’s pricing power, particularly in key markets like China and Europe.” Yet, Narayan kept his “outperform” rating. Why? Because he still believes Tesla’s scale and brand can absorb these shocks better than rivals.
Cantor Fitzgerald slashed its target from $425 to $355. Their analysis focused on macro risks. “Political uncertainty, tariffs, and slowing global EV demand could weigh on Tesla’s results for several quarters,” the firm noted. But they remain confident in Tesla’s long-term strategy, especially its energy storage and AI-driven services.
These analyst reactions reflect two competing forces. On one side, Tesla’s innovation engine and scale. On the other, rising costs, tariffs, and margin pressures that could erode near-term earnings. The tension between these is what makes Tesla’s outlook so divisive.
Is Tesla Stock a Buy, Sell, or Hold?
TSLA stock has dropped more than 37% this year. That’s steep for a company that once seemed untouchable. Analysts agree Tesla’s big ideas are intact. But the near-term outlook? Cloudier. On TipRanks, TSLA stock has a Hold consensus rating on TipRanks, based on 16 Buys, 11 Holds, and 12 Sell ratings. Also, the average Tesla price target of $290.62 implies 22.91% upside potential from current levels.
