Investing.com-- Mizuho cut its price target on Tesla (NASDAQ: TSLA ) Inc after the electric vehicle maker clocked weaker-than-expected first quarter earnings, with the brokerage touting cheap models and robotaxis as key drivers in the company’s outlook.

Mizuho cut Tesla’s PT to $375 from $325, but maintained the stock at Outperform.

The PT cut comes after Tesla clocked dismal Q1 earnings in its top and bottom line, although Mizuho said the earnings miss was largely expected.

Tesla’s Q1 EPS of $0.27 missed estimates of $0.44, while its revenue- $19.3 billion- also missed consensus of $21.4 billion.

The brokerage now sees Tesla’s 2025 deliveries down 8% from last year, after the company withdrew its annual deliveries outlook.

Still, Mizuho expects production to improve this year as Tesla retools its popular Model Y, with the company still expected to remain an EV leader in the U.S., which could help offset some market loss in China.

Misuho said it still believed that Tesla’s low-cost Model Y, which is slated for a June launch, and its Cybercab, as key drivers going into the second half of 2025 and early 2026.

“We believe TSLA’s low-cost Model Y remains on track for a 1H25E launch despite reports it has been delayed, potentially to 2026E, though we believe ramp expectations are more muted than previously estimated,” Mizuho analysts wrote in a note.

They noted that Tesla signaled its autonomous vehicle- the Cybercab- remained on track for an early-2026 launch.

Tesla’s Q1 earnings highlight little improvement for the EV major, as it grapples with sluggish sales, tighter competition in China, and boycotts across the U.S. and Europe associated with CEO Elon Musk’s political actions.

Musk said in an earnings call that he will step back from his government obligations and focus more on Tesla, starting from May. Tesla’s shares rallied on his pledge, despite the weak earnings.