Mizuho Maintains Outperform on Tesla (TSLA) Amid BEV Subsidy Concerns

Tesla Inc. (NASDAQ:TSLA) ranks among the best high growth stocks to buy now. On November 25, Mizuho maintained its Outperform rating on Tesla Inc. (NASDAQ:TSLA) but lowered its price target from $48 to $475. Mizuho made the adjustment in anticipation of possible obstacles for battery electric vehicles (BEVs) in 2026, notably pointing to anticipated cuts in subsidies in major markets.

Tesla Inc. (NASDAQ:TSLA) stated that it delivered 497,000 vehicles worldwide in the third quarter, up 7% from 463,000 the year before. The company also announced previously in October that sales of large batteries had increased by more than 80%. Tesla’s storage batteries have grown in prominence as utilities add them to the electric grid to even out the oscillations of wind and solar power.

However, given fears regarding subsidy cuts, Mizuho has reduced Tesla’s production forecasts to 1.75 million vehicles in 2026 and 2 million in 2027, which is somewhat lower than consensus expectations of 1.82 million and 2.15 million.

That said, despite short-term obstacles, Mizuho identified a number of potential future drivers for Tesla Inc. (NASDAQ:TSLA), such as the adoption of FSD v14 for autonomous driving and robotaxi launches, which it believes would strengthen the company until 2027.

Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation & storage systems in the US, China, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.