From Financial Modeling Prep: 2025-03-19 06:41:47

Tesla (NASDAQ: TSLA) faces scrutiny as RBC Capital Markets lowers its price target from $440 to $320, citing revised assumptions on Full Self-Driving (FSD) and robotaxi segments. CEO Elon Musk’s shift to a more sustainable spending approach and cost-sharing with partners like CoreWeave, Oracle, and SoftBank aim to ease financial pressures on Tesla’s AI initiatives.

Analysts at RBC, led by Tom Narayan, revised Tesla’s capital expenditure strategy due to Elon Musk’s signal of reduced AI infrastructure spending. Cost-sharing with partners is expected to alleviate financial pressure. The new price target of $320 highlights downside risk if delivery growth forecasts are not met or if competition intensifies.

With Tesla shares down over 40% year-to-date, the revised assumptions could lead to market volatility if investor expectations are not managed effectively. Tesla’s strategic shift toward offloading AI infrastructure costs to partners signifies a move to a more sustainable growth model.

For those tracking Tesla’s performance, real-time data resources like the Financial Growth API provide detailed metrics on revenue growth and other key performance indicators. The Company Rating API offers insight into analyst ratings and price targets for Tesla, reflecting shifting market sentiment with new forecasts.

RBC Capital Markets’ significant price target revision for Tesla reflects a more cautious outlook on FSD and robotaxi segments. Revised pricing for FSD subscriptions and lower robotaxi market share expectations pose challenges in a tougher competitive environment. Strategic cost reductions and partnerships may help mitigate risks as Tesla navigates this challenging period.



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