Tesla Faces EU Struggles but RBC Sticks to Bullish Outlook on EV Growth

🗝️ Key Points

• In an interview with Yahoo Finance, he acknowledged Tesla's current headwinds, including sales softness in Europe and heightened rivalry in China, but upheld his Outperform.
• Narayan Recently revised his price target downward from $440 to $320.He pointed to several potential catalysts ahead, such as a refreshed Model Y and a new entry-level vehicle.
• While Tesla's European registrations have declined, Narayan highlighted that U.S.

Tesla (TSLA, Financial) is encountering mounting challenges in Europe and the United Kingdom—its third-largest market—as competition intensifies, older models phase out, and CEO Elon Musk’s political presence sparks growing backlash.

Still, RBC Capital Markets analyst Tom Narayan maintains an optimistic long-term view. In an interview with Yahoo Finance, he acknowledged Tesla’s current headwinds, including sales softness in Europe and heightened rivalry in China, but upheld his Outperform rating on the stock. Narayan recently revised his price target downward from $440 to $320.

He pointed to several potential catalysts ahead, such as a refreshed Model Y and a new entry-level vehicle that could help reinvigorate demand. While Tesla’s European registrations have declined, Narayan highlighted that U.S. sales appear stronger so far in 2025 and the company continues to command a dominant share of the U.S. EV market.

Though he didn’t address Musk’s political controversies directly, Narayan emphasized that electric vehicle adoption remains in its early stages globally, suggesting room for broader market expansion that could benefit Tesla and peers alike.

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