Yahoo Finance

Tesla, those shares falling after Chinese automaker BYD unveiled a lineup of electric vehicles that it said can charge almost as fast as it takes to refuel a regular standard combustion engine vehicle car. Now, separately, RBC analyst Tom Narayan slashed his price target on Tesla to $320 from $440, citing lower estimates for the pricing of its full self-driving technology, FSD, and robotaxi penetration here. There you're seeing shares of Tesla down by about 4%. Notably, he is one of the bulls on the street on Tesla here, bringing down his price target, but still implies upside even from the market that we are at right now, $228 a share pre-market.

It's it's interesting. There's a lot to unpack here. I think one of the things is, of course, that we are seeing this continued sort of disclaimer that we could be seeing buyers kind of delaying their purchases of Teslas amid new models expected to come out, like the Model two and the refreshed Model Y, which Narayan did mention could positively impact Tesla in the second and third quarters of this year. But I think, and you'll tell me what you think, Brad, but I think the sticking point here is how much money he anticipates Tesla being able to make on a monthly basis for their full self-driving technology. They previously thought that the company would be able to ramp back up to the $100 a month by 2030 given some of the options that Tesla had put forward in the past. Now he's anticipating a decline to $50 a month for that full self-driving technology and also anticipates lower market share for their FSD tech as well.

I will tell you what I think about this because you asked. So, spot on with what they were anticipating, and it comes back to the demand profile right now. And you have a few things that are happening. One, in China, where Tesla is banking a lot of being able to deliver directly into that region, you're seeing even more of the homegrown competition maintain mind share, maintain market share, and actually grow out on both of those metrics. So, all of those things considered, it's actually going to take us into a story that we're about to talk about in a hot second. So stay tuned for that BYD, hint hint. But all those things considered, it's not just what's taking place in China within the mind share and the market share, it's also the rolling back of some of the credits in some of the larger trade partner tit-for-tat tariff wars and spats that are continuing to be in negotiation right now. Looking at you, our neighbor to the north, Canada, and Toronto specifically, where they're going to be rolling back some of those credits. That could be a near-term hit and bearish signal right now for Tesla shares.