Tesla Inc. (TSLA)
Tesla had its “Neutral” rating reiterated by Goldman Sachs with a 12 month price target of $400 per share. Analyst Mark Delaney maintains a more balanced stance on the stock following its recent share price strength and currently believes the stock is currently trading above fair value.
Goldman Sachs continues to acknowledge Tesla’s leadership in electric vehicles, scale advantages in manufacturing, and long-term optionality tied to autonomous driving, energy storage, and software-driven revenue streams. However, analysts remains cautious on the near-term outlook, citing ongoing margin pressure from pricing competition, uneven demand trends across key global markets, and execution risk tied to new model launches and capacity expansion.
The Neutral stance also reflects uncertainty around the timing and magnitude of profitability improvements from next-generation vehicles and autonomy-related initiatives, which remain central to the longer-term bull case but are not yet fully reflected in near-term earnings visibility. While Tesla’s innovation pipeline and strategic positioning support its relevance as a category leader, Goldman believes upside from current levels may be more incremental without clearer evidence of sustained margin recovery or a material acceleration in volume growth to sustain a further increase to the valuation model.
Goldman Sachs’ reiteration suggests Tesla remains a structurally important player in the EV and clean-energy ecosystem, but at current levels, the risk-reward profile appears balanced, warranting a wait-and-see approach rather than a more aggressive bullish stance.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
