The pace of electric vehicle (EV) sales growth has slowed over the last year. Most current-generation EVs are expensive, interest rates are up, and public charging availability isn't yet where it needs to be. Tesla (NASDAQ: TSLA) also has a mercurial and outspoken CEO, Elon Musk, whose provocative and heavily political statements in recent months may be driving green-minded car buyers toward alternatives.

With the end of the quarter looming, an analyst at Mizuho Financial Group on Sunday evening cut his rating on Tesla's stock to "neutral" from "buy" and cut its price target as well.

Mizuho analyst Vijay Rakesh wrote that while the longer-term trend toward electric vehicles remains intact, near-term demand and tightening liquidity will challenge Tesla and other electric vehicle leaders into 2025. In Tesla's case, signs of a slowdown in China's EV market will add to the pressure. The bank's analyst team now sees overall EV sales growth rising 15% in 2024, down from an earlier estimate of 25% annual growth.

Continue reading

Source Fool.com