This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) received a lower price target from RBC Capital Markets as the firm adjusted its outlook for the company’s robotaxi opportunity while maintaining a positive long-term view on Tesla’s growth prospects.

RBC analyst Tom Narayan reduced Tesla’s price target to $480 from $500 while keeping an Outperform rating. The revision reflected changes to expectations around Tesla’s autonomous driving business, including the timeline and potential financial contribution from robotaxi operations.

Despite the target reduction, RBC continued to highlight potential strategic benefits from a possible Tesla and SpaceX (NASDAQ:SPCX) combination. Narayan…