Mizuho lowers Tesla and Rivian Price Targets amid EV demand concerns

Brokerage Mizuho says tariff uncertainty and regulatory loosening in the EU might lead to softer demand for electric vehicles and autos from U.S.-based companies like Tesla TSLA.O and Rivian RIVN.O

Mizuho cuts PT for Tesla to $430 from $515 and Rivian to $11 from $13

Shares of Tesla fall 1.1% to $247.3 in premarket trading

The European Commission gave automakers three years, rather than only one, to meet new CO2 emission targets for their cars and vans; compliance would now be based on a carmaker's average emissions over the period 2025-2027

The combination reduces the immediate pressure to meet 2025 EV targets, posing a headwind for EV adoption, Mizuho says

Mizuho also sees China's EV market to remain robust thereby offsetting weaker demand in the U.S. and EU

Brokerage sees TSLA sales dropping in the U.S., EU, and China due to geopolitical tensions, brand perception, competition, and weak Model Y demand