Analyst slashes Tesla stock price target

Core Viewpoint - Tesla's stock has experienced a significant decline recently, dropping 50.40% since December highs, yet it remains 37% above its price from a year ago [1][2]. Group 1: Stock Performance - TSLA stock is currently priced at $234.98, reflecting a 41.81% decrease in 2025 [1]. - Despite the recent downturn, analysts maintain a generally optimistic outlook for Tesla's long-term prospects, with RBC Capital's Tom Narayan reiterating a 'buy' rating while lowering the price target from $440 to $320, indicating a potential upside of 36.18% from the current price [2]. Group 2: Sales and Market Perception - The narrative surrounding Tesla's sales decline, particularly a reported 70% drop in shipments in Germany, is considered exaggerated by some analysts [3]. - The anticipated benefits from Tesla's 'full self-driving' (FSD) and 'Robotaxi' technologies are now viewed as less promising than previously expected, contributing to the price target reduction [3][5]. Group 3: Competitive Landscape - Other automotive companies are advancing in self-driving technology, diminishing Tesla's unique position in the market [5]. - Growth has been a critical factor in justifying Tesla's high valuation, as it is valued significantly higher than Toyota, despite selling a fraction of the vehicles [6]. Group 4: Investor Sentiment and Support - Concerns arise regarding Tesla's growth trajectory, especially as 2024 marks the first year of declining sales, leading investors to question the justification for the current stock price [7]. - Despite challenges, there is potential for bullish sentiment to prevail, bolstered by support from influential figures, including a recent endorsement from President Trump [8].