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Tesla sale or shutdown in China seen as damaging to stock value
Analyst Tom Narayan at RBC Capital Markets said any forced China divestiture would likely fetch only a fraction of value because key upside tied to humanoids and robotaxi plans would be lost.
A Wall Street Journal claim that Elon Musk-led Tesla could shut or sell its China operations has drawn concern from analysts, with RBC Capital Markets weighing in that such an outcome would likely be a negative for Tesla shares. The debate centers on how much value Tesla could realize if its China business were sold under pressure, according to Yahoo Finance. Tom Narayan of RBC Capital Markets said a forced sale would probably not deliver fair value, arguing that a buyer such as BYD or SAIC would likely be interested primarily in the automaking assets, while relinquishing Tesla-linked humanoids and robotaxi upside. Narayan’s view implies the market would see less value in a transaction than Tesla might obtain in a normal sale process. The report also highlighted the scale of Tesla’s exposure to China, calling it the company’s second-biggest revenue contributor. China revenue was cited at about $9 billion, roughly a fifth of Tesla’s total revenues this year, and the country hosts the Shanghai Gigafactory, Tesla’s largest manufacturing hub, opened in 2019 with annual capacity exceeding 950,000 vehicles. The China stakes come as Tesla is described as staging a comeback in the Chinese EV market, with May 2026 deliveries of 85,982 units across Model 3 and Model Y. Yahoo Finance said that figure rose 8.2% from April, marking the sixth consecutive month of growth, and was up 39.4% year over year.