Goldman raises price target on Tesla but still sees stock declining
Tesla’s growth outlook could provide some support for its shares, though they may still come down a bit from current levels, according to Goldman Sachs. The Wall Street investment bank, which kept a neutral rating on the electric vehicle maker in a report issued Wednesday, raised its price target to $395 from $300. Yet, even that updated target still implies a potential 7% down move in Elon Musk’s carmaker over the next 12 months compared with Wednesday’s close. Goldman’s higher price target was stirred by a “move higher in market multiples more generally, as well as the growth rate we believe the business can support over the longer term, plus the increases we make to our forward EPS estimates,” analyst Mark Delaney wrote. “If Tesla can have outsized share in areas such as humanoid robotics and autonomy, then there could be upside to our price target, although if competition limits profits (as is happening with the ADAS market in China) or Tesla does not execute well, then there could be downside,” the analyst said, referring to advanced driver-assistance systems. In the long run, Delaney is more optimistic about the path of Tesla’s future growth, expecting earnings per share to expand due to “larger contributions from autonomy and robotics.” Earnings in 2030 could reach as high as about $20 per share, above a “middle of the road type scenario” of $7 to $9 a share, he said. Delaney also expects vehicle deliveries in the third and fourth quarters of this year to come in better than expected. Tesla reported a 14% decline in vehicle deliveries in the second quarter, its second consecutive year-over-year decline. “We attribute the better 2H volumes in part to the recent Model Y L launch, in part based on somewhat better consumer survey data, and in part with [Inflation Reduction Act] EV purchase credits set to expire on 9/30/25,” he said. TSLA 6M mountain TSLA, 6-month Nearly as many analysts, 21, rate Tesla neutral or hold as they rate it the equivalent of buy, 23, according to LSEG data. Tesla shares rose as much as 1.3% in early trading Thursday, on track for its eighth straight advance. Over the past six months, Tesla has nearly doubled, climbing 90%, or more than four times the gain in the S & P 500 during the same period.
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