Shares of Mercedes-Benz have slumped to a six-month low, pressured by a stark warning from RBC Capital Markets over looming US tariffs. The stock traded around €50.70 on Wednesday, a level that puts it roughly 7.5% below its 50-day moving average and dangerously close to its 52-week low of €48.45. Since the start of the year, the luxury automaker’s equity has shed nearly 18 percent of its value.
The Canadian bank’s analysis, published this week, pinpointed the United States as a central risk to the Stuttgart-based group’s profitability. RBC analyst Tom Narayan, who rates the stock “Sector Perform” with a €56 price target, warned that new trade tariffs could severely pressure margins in one of the most lucrative markets for luxury vehicles. The report highlighted that Mercedes-Benz appears less equipped than rivals like Volkswagen or Ferrari to cushion the impact of such headwinds, which also include rising energy costs and potential supply chain disruptions.
Investor skepticism is being compounded by a deteriorating operational landscape. Mercedes-Benz USA CEO Adam Chamberlain cautioned earlier in April about a more challenging year ahead in 2026, citing high borrowing costs and persistent inflation as brakes on premium segment demand. This comes after the group’s EBIT for the 2025 fiscal year fell significantly to €5.8 billion.
All eyes are now on the company’s first-quarter report, scheduled for release on April 29. Market participants will scrutinize management’s concrete plans to counter the threat of US tariffs and assess whether a major product offensive—involving more than 40 planned model launches over three years—is beginning to gain traction. The board is also expected to provide details on margin development and the status of ongoing cost-saving programs.
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The technical picture reinforces the bearish sentiment. The stock remains firmly below its 200-day moving average, and its Relative Strength Index reading of 28.5 indicates the shares are technically oversold. Despite this pressure, analyst views remain divided, with Goldman Sachs maintaining a far more bullish €66 price target.
Beyond transatlantic trade tensions, structural challenges in China continue to loom large. Intensifying competition from local manufacturers like BYD and Geely, who are pursuing aggressive pricing strategies, makes it harder for Mercedes to defend its electric vehicle margin targets. CEO Ola Källenius, however, continues to back the strategy of deriving up to 40% of sales from electrified vehicles in the medium term.
At its Annual General Meeting in mid-April, management pointed to a net liquidity position exceeding €32 billion as a pillar of stability. Shareholders approved a dividend of €3.50 per share, which was paid out on April 21. A convincing narrative from leadership next week could potentially shift the gloomy market mood. Without it, the stock is likely to remain anchored near its yearly lows.
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