Written by Cláudio Afonso | LinkedIn | X
Goldman Sachs analyst Mark Delaney released on Wednesday a new research note on Tesla raising the firm’s price target to $345.00 from $250.00. Based on Tuesday’s closing price of $400.99, the new price target implies a downside of about 14%.
The analyst reiterated a Neutral rating on the shares as he expects the company to “face headwinds in the core auto business” in the near to medium term given the recent decline of EV market share across the U.S., China, and Europe.
“While we believe that the company is in a leading position in the domains of platforms & power, and in the broader clean mobility space (including EVs, storage, software, and charging), we expect Tesla will face headwinds in the core auto business over the near to medium term (including slower global EV demand, and pricing pressure),” the analyst wrote in a new research note.
However, Goldman Sachs sees Tesla’s EV maket share to be “more stable” after having reduced across US, Europe and China.
“Tesla’s EV market share has been trending lower across the US, Europe, and China which we believe is contributing to pricing headwinds, although share could be more stable for Tesla going forward, with several of the larger auto OEMs taking a more selective approach to the EV market given likely reduced emissions requirements,” Delaney wrote before noting the long-term potential of both FSD and robotics.
While we see some fundamental headwinds to the core auto business over the near to medium term and see valuation as full, we also believe the stock could remain at a higher multiple to reflect the long-term opportunity tied to FSD/robotics given broader market interest in potential AI beneficiaries.”
Earlier this week, Morgan Stanley analyst Adam Jonas had also increased the firm’s price target on the stock to $400 from $310 while naming Tesla as the firm’s top pick.
Registration data released on Tuesday showed that Tesla registered 21,900 vehicles in China between December 2 and 8, marking its third-highest weekly figure in the past three years.
Additionally, Cantor Fitzgerald’s analyst Andres Sheppard raised the firm’s price target on the stock by over $100.
Written by Cláudio Afonso | LinkedIn | X
