RBC Capital Lowers Tesla’s Price Target to $475

RBC Capital analyst Tom Narayan lowered the price target on Tesla (NASDAQ: TSLA) to $475.00 (from $480.00) while maintaining an Outperform rating.

“Robotaxi, FSD, and the Road to Autonomy; Q1/26 gross margins look healthy, even when excluding onetime warranty benefits and tariffs.

FSD subscriptions grew 51% y/y, with EU and China approvals expected in Q2/26 and Q3/26, respectively.

Robotaxi expansion into Dallas and Houston is another positive, with a dozen states targeted by year-end.

We lower our PT to $475 (from $480), reflecting $5B higher capex spend and caution around humanoids.

We lower our PT to $475 from $480, driven by the $5B in higher capex spend and modest adjustments to our humanoid valuation.

Our valuation is based on a SOTP framework, applying 1x Sales to the auto segment, 15x EBITDA to Megapacks, and 10x Revenues across the autonomy segments (FSD, robotaxis, and robotics).”

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