Goldman Sachs has revised its 12-month price target for Tesla, reducing it to $320 from the previous $345. The adjustment reflects the firm’s concerns over Tesla’s recent vehicle delivery figures across major markets. The new forecast indicates potential challenges for Tesla amid shifting demand dynamics.
Analysts have long monitored Tesla’s performance amid global market fluctuations. Recent trends show a continuation of challenges that the company has faced in previous quarters, such as supply chain issues and increased competition in the electric vehicle sector. This downward revision by Goldman Sachs aligns with earlier observations of market uncertainties impacting Tesla’s growth trajectory.
Why Did Goldman Sachs Lower the Price Target?
Goldman Sachs reduced Tesla’s price target due to weaker vehicle deliveries in key regions such as China, Europe, and the US. The transition to the new Model Y Juniper impacted the company’s Q1 delivery forecast.
“We lower our below consensus delivery estimates for Tesla, reflecting the quarter-to-date data for key regions (i.e., China, Europe, and the US), as well as what we believe are broader demand trends,”
the analysts noted. These factors contributed to the firm’s decision reflecting concerns over immediate performance.
How are Tesla’s Regional Deliveries Performing?
In the US, Tesla’s deliveries in February remained flat compared to the previous year. Europe experienced a significant decline, with over a 40% drop in Tesla registrations in January and a 20% decrease in February in markets like the UK and Spain. In China, retail sales saw a mid-single-digit year-over-year decline, though Goldman Sachs expects Giga Shanghai’s production ramp for the Model Y Juniper to enhance deliveries in the region this month.
What is the Future Outlook for Tesla According to Goldman Sachs?
Despite current challenges, Goldman Sachs remains optimistic about Tesla’s long-term prospects, particularly in software revenue growth. The firm acknowledges Tesla’s progress with version 13 of Full Self-Driving (FSD) technology but cautions about monetizing these features in competitive markets like China, where rivals offer free ADAS solutions.
Goldman Sachs maintains a Neutral rating on Tesla stock, emphasizing that its 2025 earnings estimates are below consensus. The firm’s outlook underscores a cautious stance despite Tesla’s innovative strides and market presence, suggesting that immediate hurdles may affect stock performance in the near term.
Tesla faces a period of adjustment as it navigates delivery challenges and intensifying competition in key markets. While Goldman Sachs’ latest price target adjustment indicates short-term headwinds, the focus on software innovation and advancements in autonomous driving technology could position Tesla favorably in the long run. Investors may need to balance current market performance with the company’s potential for future growth in the evolving electric vehicle landscape, considering both operational metrics and technological developments.
