Tesla stock dipped early Tuesday, giving back a portion of the previous session’s sharp rally.
The stock fell 2.5% after climbing 6.2% on Monday, when the broader market rebounded and optimism over self-driving technology helped lift sentiment.
The Nasdaq Composite rose 2.7% on Monday, and Tesla benefited from the broader recovery as well as from its deeper losses earlier in the month.
Coming into the week, Tesla shares were down 14.3% for November.
Analyst cuts price target for Tesla stock
Self-driving momentum helped fuel Monday’s move. Melius Research analyst Rob Wertheimer said Tesla’s Full-Self Driving technology was improving rapidly and widening its lead over traditional automakers.
He argued that autonomy was nearing a tipping point and that Tesla was positioned to capture significant value as adoption accelerates.
But Tuesday’s early decline came after Mizuho cut its price target on Tesla to $475 from $485 while maintaining an Outperform rating.
The firm pointed to headwinds in the US and China electric-vehicle markets.
“Lowering TSLA estimates/PT to $475 from $485 with weaker US/China EV markets, potential posing 2026E headwinds,” Mizuho said.
The group highlighted concerns about US EV subsidy reductions — with the US accounting for about 37% of Tesla’s third-quarter 2025 sales — and the possibility of a 50% subsidy cut in China, which represents roughly 34% of Tesla’s sales in the same period.
Mizuho now forecasts 1.75 million deliveries in 2026 and 2.00 million in 2027, slightly below consensus expectations of 1.82 million and 2.15 million, respectively.
Despite near-term pressure, the firm maintained its longer-term bullish outlook, citing autonomous-driving tailwinds.
It pointed to the adoption of FSD v14, upcoming robotaxi launches, and progress in humanoid robotics as potential growth drivers through 2027.
Automakers don’t want Tesla’s FSD
Tesla’s pullback also comes as CEO Elon Musk acknowledged that years of efforts to license Tesla’s Full Self-Driving system to other automakers have not materialised.
“They don’t want it!” he said in a recent X post.
For years, a central pillar of Tesla’s bullish narrative has been the idea that its autonomy technology is so far ahead of competitors that other carmakers would eventually license FSD to remain viable.
Musk first floated the possibility in early 2021, saying Tesla had engaged in “preliminary discussions” with some manufacturers.
He reiterated this position repeatedly in subsequent years, saying in June 2023 that Tesla was “happy to license Autopilot/FSD or other Tesla technology” to competitors.
Speculation peaked in April 2024 when Musk said Tesla was “in talks with one major automaker” and that there was a “good chance” of reaching an agreement before year-end.
The deal never materialised. Earlier this year, Ford CEO Jim Farley bluntly dismissed the idea of adopting Tesla’s system, saying “Waymo is better” — widely interpreted as a response to those earlier licensing discussions.
Musk said that talks with automakers had stalled in part because they presented “unworkable requirements” for Tesla, signalling a shift away from one of the company’s long-standing strategic aspirations.
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