- Tesla’s (TSLA) stock fell 5.64% to $224.63, down $13.43 from $238.01, after RBC Capital cut its price target to $320 from $440, citing reduced self-driving ($50/month by 2026 from $100) and robotaxi forecasts amid weaker Europe/China deliveries.
- BYD’s “Super e-Platform” at 1,000 kilowatts, offering 400 kilometers in five minutes, outpaces Tesla’s 500-kilowatt Superchargers (270 kilometers in 15 minutes), intensifying competition and pressuring Tesla’s charging edge.
- Despite a 43% year-to-date drop and 53% three-month slide, worsened by Elon Musk’s government role, RBC sees U.S. sales resilience, though Tesla’s market share loss in Europe and China fuels investor unease.
Tesla’s (TSLA) stock slid 5.64% to $224.63 in Tuesday trading, down $13.43 from a previous close of $238.01, reflecting a mix of competitive pressures and recalibrated expectations. RBC Capital slashed its price target to $320 from $440, maintaining an ‘Outperform’ rating, but trimmed its forecasts for Tesla’s self-driving revenue – now projecting full self-driving subscriptions at $50 per month by 2026, half of today’s $100 – and lowered robotaxi penetration assumptions. The adjustment follows Tesla’s lackluster delivery performance in Europe and China during January and February, though RBC cautions against overreacting, noting these markets are a smaller slice of Tesla’s global sales, with U.S. figures showing modest gains despite losing ground overseas.
The broader context amplifies Tesla’s challenges, with shares already down 43% year-to-date and a staggering 53% over the past three months, a decline sharpened by CEO Elon Musk’s focus on the Trump administration’s Department of Government Efficiency. Adding fuel to the fire, Chinese rival BYD unveiled its “Super e-Platform,” boasting a 1,000-kilowatt charging capability that delivers 400 kilometers of range in five minutes—doubling the 500-kilowatt peak of Tesla’s Superchargers, which offer 270 kilometers in 15 minutes. BYD’s chairman, Wang Chuanfu, framed this as a game-changer to erase range anxiety, spotlighting a gap Tesla has yet to close, even as its charging network remains a benchmark in the industry.
Despite the stumble, Tesla’s narrative isn’t all gloom. RBC argues that fixating on regional demand dips misses the bigger picture, with Europe and China less critical to Tesla’s annual haul than the U.S. market, where strength persists. Yet, the stock’s ninth straight week of potential declines underscores a shaken investor confidence, compounded by BYD’s technological leap and Tesla’s recalibrated autonomous ambitions. The $320 target still signals upside, but the road ahead demands Tesla counter both competitive innovation and its own shifting priorities under Musk’s divided attention. For now, the market’s verdict is clear: Tesla’s dominance is under scrutiny, and its next moves will need to electrify more than just its vehicles.
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