Tesla share target cut at Goldman on soft demand trends in key regions
Goldman Sachs has lowered its 12-month price target for Tesla (NASDAQ:TSLA) to $320 from $345, citing weaker-than-expected vehicle deliveries in key regions and ongoing demand challenges, News.Az reports citing Investing.
“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,” analysts wrote.
Tesla’s first-quarter deliveries are now forecast at 375,000, down from Goldman’s prior estimate of 399,000 and well below the consensus of 426,000.
The bank attributes part of the weakness to the Model Y transition but also notes that underlying demand is “somewhat weaker” than it had previously expected.
Regional data is said to suggest significant softness. In the US, deliveries through February are “tracking flattish year-over-year” but down meaningfully quarter-over-quarter.
Meanwhile, the bank notes that China’s CPCA data indicates a mid-single-digit decline in retail sales year-over-year, though March could improve as Model Y production ramps up.
On Full Self-Driving (FSD), Goldman sees progress with version 13 but believes Tesla may struggle to monetize it in China, where “multiple competitors… are also offering hands-free ADAS solutions without an incremental software package needing to be purchased.”
Despite long-term optimism for Tesla’s software revenue growth, Goldman remains cautious on near-term fundamentals, maintaining a Neutral rating on the stock and highlighting that its 2025 earnings estimates remain below consensus.
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