Daiwa Capital Markets has reduced its price target for Tesla to $300 from $420, citing concerns about profit margins and slower demand growth in key markets. The brokerage noted increased competition in China and Europe, alongside price reductions throughout Tesla’s product range, which may impact short-term profitability. Additional observations include the rate of electric vehicle adoption and consumer reactions to rising interest rates, both of which could affect sales. Despite this downgrade, Daiwa maintains a neutral rating, emphasising Tesla’s strengths in battery technology and energy storage. Daiwa’s reduced target mirrors growing concerns across the sector. Margins remain under pressure due to persistent price cuts, particularly in China and Europe, where competition intensifies. With lower pricing comes narrower profitability. That much is clear. But demand itself presents another risk. A slowdown in key regions underscores uncertainty around future sales, with higher borrowing costs potentially limiting consumer appetite. These factors are not isolated. We have seen other analysts recalibrate expectations as well, responding to broader concerns about profitability and volume growth. While Daiwa’s stance remains neutral, their assessment underscores vulnerabilities affecting automakers reliant on strong expansion. Their recognition of strengths in battery technology and energy storage offers some balance, though immediate financial pressures take precedence. Shifts in the market are not new. However, the pace and direction of these changes shape near-term movements. Pricing strategies remain a battleground. Cuts may stimulate demand, but they also weigh on margins. Competitors, particularly those based in China, continue refining their offerings, often at more aggressive price points. Europe follows a similar trend. Neither environment presents an easy path. External pressures add to this mix. Interest rates, already impacting affordability, feed into purchasing behaviour. Potential buyers weighing loan repayments alongside vehicle costs may delay decisions. That alone introduces unpredictability. The reaction to such pressures extends beyond a single company. Broader sentiment towards electric vehicles, particularly how quickly consumers adopt them under shifting financial conditions, influences expectations. Cautious positioning reflects these realities. Lowering price forecasts aligns with receding optimism about revenue expansion in the near term. The reassessment of growth potential follows clear trends rather than speculation. Recognising this, those navigating the market should adjust accordingly. اکنون تجارت را شروع کنید – برای ایجاد حساب VT Markets زنده خود اینجا را کلیک کنید