RBC Capital Markets analyst Tom Narayan lowered price targets on Tesla, Ford, and Lucid on Monday, trimming estimates across the three automakers while maintaining his existing ratings on each.
Narayan kept Tesla as his only Outperform-rated stock among the group, while Ford and Lucid remained at Sector Perform.
All three stocks were trading lower in pre-market on Monday as the three automakers prepare to report first quarter financial results over the next three weeks.
Tesla
Narayan cut his Tesla price target by 4% to $480 from $500 while reiterating his Outperform rating — the most bullish stance RBC holds among the auto names it covers.
Based on Friday’s closing price of $348.95, the revised target implies 37.6% upside.
As of publication time, Tesla shares were down 0.6% in pre-market trading.
RBC has consistently maintained a bullish view on Tesla, valuing the company’s core automotive business at 1x sales while applying premium multiples to its energy storage, robotaxi, and humanoid robotics businesses.
Narayan projects Tesla revenue rebounding to $111 billion in 2026, up from an estimated $93.5 billion in 2025, with adjusted earnings per share rising from $1.99 to $2.99.
The analyst previously cut his Tesla target from $440 to $320 in March 2025, citing intensifying competition in China and Europe and lower FSD pricing assumptions.
He subsequently raised it to $500 in early 2026 as delivery trends stabilised.
RBC has flagged volatile earnings, cost inflation, supply chain risks, and CEO Elon Musk’s political profile as ongoing concerns.
Tesla shares have fallen more than 22% year-to-date. The company delivered 358,023 vehicles in Q1 2026, missing the consensus estimate of approximately 370,000.
Ford
Narayan lowered his Ford target by 8.3% to $11 from $12, maintaining a Sector Perform rating.
Based on Friday’s close of $12.13, the revised target implies 9.3% downside. Ford shares were down 0.91% in pre-market on Monday.
In December, Narayan praised Ford‘s decision to pivot away from fully electric vehicles as “a rational response to the slowing EV market.”
The restructuring included exiting the BlueOval SK joint venture, taking ownership of two battery plants, cancelling three EV models, and ending F-150 Lightning production.
RBC has noted that Ford’s Model E segment (electric vehicles) lost $1.4 billion in Q3 2025 alone and that the company now targets EV segment profitability by 2029.
The firm cautioned that Ford‘s impairment charges are “larger than GM‘s by a factor of 12″ and that retooling plants toward ICE and hybrid production “could be a lengthy process.”
Lucid
Narayan cut his Lucid target by 20% to $8 from $10, maintaining a Sector Perform rating.
It is the third consecutive price target reduction since January, when RBC’s target stood at $20.
Based on Friday’s close of $8.58, the revised target implies 6.8% downside.
Lucid shares were down 0.7% in pre-market on Monday.
The stock hit a new all-time low of $8.58 on Friday, extending a week of sustained pressure that had already pushed the stock to a previous low of $8.83 on Tuesday.
Since the first trading day of 2026, when the stock opened at $10.73, Lucid has lost nearly 19% of its value.
The stock has now fallen more than 74% from its 52-week high of $33.70 and has crashed 98.6% since its 2021 peak.
In February, Narayan expressed “disappointment” with Lucid‘s lower-than-expected 2026 production guidance and its Q4 2025 production restatement, which revised full-year 2025 output down to 17,840 units.
He noted that “unit economics appear to be improving” but flagged concerns about “competition and limited software revenues near-term.”
Following Lucid‘s March Investor Day, Narayan said he remained “most concerned about liquidity,” flagging near-term financing needs despite the continued backing of the Saudi Public Investment Fund.
Lucid reported Q4 2025 revenue of $522.7 million, a 123% year-on-year increase, but posted an adjusted loss of $3.08 per share — wider than the $2.68 consensus estimate.
Gross margins remained deeply negative at -81%. The company has accumulated $14.8 billion in cumulative losses since 2019.
Broader market weakness tied to geopolitical tensions, including uncertainty around the Strait of Hormuz, has contributed to recent declines across the EV sector.
However, company-specific issues — including a 29-day stop-sale on the Gravity SUV due to a seat belt recall affecting 4,476 vehicles — remain one of the primary drivers for Lucid.
