Tesla, Rivian, Nio Hit With Downgrades As EV Demand Slows
Portfolio Pulse from Adam Eckert
Mizuho downgraded Tesla, Rivian, and Nio to Neutral from Buy due to slowing EV demand and rising inventories. Tesla's price target was lowered to $195, Rivian's to $12, and Nio's to $5.50. The firm highlighted challenges such as limited affordability, higher insurance costs, and a lack of charging infrastructure as headwinds for the EV market. Despite these downgrades, Tesla shares were up, Rivian shares were down, and Nio shares were up at publication time.
March 25, 2024 | 5:18 pm
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NEUTRAL IMPACT
Nio downgraded to Neutral by Mizuho with a price target of $5.50, as the firm grows cautious on Nio's short-term outlook.
Nio's downgrade reflects concerns over its short-term outlook and delivery guidance adjustments. Despite these challenges, Nio's share price increased, indicating investor optimism or mixed reactions to the downgrade.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Tesla downgraded to Neutral by Mizuho with a price target of $195, citing slowing EV demand and rising inventories.
Despite the downgrade, Tesla's share price increased, indicating mixed market reactions. The downgrade reflects concerns over EV demand and inventory levels, but Tesla's strong market share and global presence may mitigate some negative impacts.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Rivian downgraded to Neutral by Mizuho with a price target of $12, facing headwinds from slowing EV demand and execution challenges.
Rivian's downgrade and the subsequent share price decline reflect concerns over EV demand and operational challenges. The downgrade highlights execution risks and the impact of broader market trends on Rivian's performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90