Goldman Sachs Expects More Tesla Price Cuts, Lowers Earnings Estimates Amid Grim Margin Headwinds
Portfolio Pulse from Adam Eckert
Goldman Sachs has lowered its earnings estimates for Tesla due to expected continued price cuts and gross margin headwinds. The firm maintains a neutral stance on Tesla with a price target of $275. Analyst Mark Delaney predicts Tesla will further lower prices in 2024 to support higher volumes, which will offset the EPS benefit from cost reductions. Broader factors such as rising oil prices and lowered recession expectations continue to be positive for EV demand. Tesla shares were down 2.47% at $267.64 at the time of writing.
September 18, 2023 | 5:29 pm
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Goldman Sachs has lowered its earnings estimates for Tesla due to expected continued price cuts and gross margin headwinds. The firm maintains a neutral stance on Tesla with a price target of $275.
The lowered earnings estimates by Goldman Sachs reflect a negative outlook for Tesla's financial performance in the short term. This is due to expected continued price cuts and gross margin headwinds. This news is highly relevant and important for Tesla investors as it directly impacts the company's financial outlook and stock price.
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