Tesla (TSLA) is losing market share in Europe and China, although fears related to deliveries in these markets might be "overblown," RBC Capital Markets said in a note Monday.

The firm reduced its market share assumption in both markets to 10% from 20%.

"In China in particular, competition is intensifying," RBC said. "Further, on robotaxis, we think it likely that domestic [original equipment manufacturers] will dominate the market."

Tesla sales in Europe fell 45% in January while in China, sales fell 60% in January and 21% in February, according to the note. However, RBC said these regions represent only "a small portion" of Tesla's total sales compared with annual figures. US sales, on the other hand, saw modest increases, the note said.

RBC said deliveries might be affected by the planned factory shutdowns for the Model Y refresh, traditionally slow sales in the early part of the year, and potential buyers delaying purchases to wait for Model 2 and the updated Model Y.

RBC cut its price target on Tesla to $320 from $440, and maintained its outperform rating.

Tesla shares were down over 5% in recent Tuesday trading.

Price: 225.21, Change: -12.80, Percent Change: -5.38