RBC Cuts Price Target on Tesla from $440 to $320

RBC analyst Tom Narayan slashed on March 18, 2025, the price target on Tesla from $440 to $320, keeping an‘Outperform’ rating on the stock.

“We now assume Tesla FSD pricing drops to $50/month in 2026 from $100/month today.

While we do think it unwise to extrapolate too much from car demand dynamics, Tesla is losing market share in Europe and China.

In China, in particular, competition is intensifying. Further, on robotaxis, we think it likely that domestic OEMs [original equipment manufacturers] will dominate the market.

As a result, we now lower our market share assumption to 10% from 20% in both markets.

Although sales fell sharply in Europe (45% in January) and China (60% in January and 21% in February), these regions represent a small portion of Tesla’s total sales compared to their annual figures (311k in Europe and 683k in China for ’24). Tesla’s U.S. sales, on the other hand, saw modest increases.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.