Tesla could have less room to run in 2025 as U.S. tariffs take hold, according to Bank of America. The firm lowered its price target on the electric vehicle stock to $380 per share from $490 and reiterated its neutral rating. BofA's forecast implies more than 33% upside from Monday's close. Analyst John Murphy attributed the lower price objective to "renewed uncertainty" in 2025, and pointed to President Donald Trump's tariffs as a headwind for production in North America. Levies on Canadian, Mexican and Chinese imports took hold on Tuesday, with China and Canada issuing retaliatory duties. "We note that potential tariffs on Mexico and Canada pose significant risk to our NA production estimates and could create a supply shock similar to COVID," Murphy said. The analyst also pointed to a slowing of Tesla's vehicle production in Europe year over year, as well as a lack of news on the company's low-cost model and "sentiment on the brand potentially souring." The analyst noted that he expects overall industry dynamics to be inconsistent in 2025. "Early in 2025, there are material and potentially disruptive changeovers at F (Ford Motor, Kentucky Truck) and TSLA (Tesla, Model Y globally), while GM (General Motors) is largely clear," Murphy said. "The resulting volume disruption and macroeconomic headwinds should continue to haunt suppliers, but cost actions flowing through the P & L should support flat to up margins." Tesla stock has pulled back nearly 30% in 2025. TSLA YTD mountain Tesla stock.
