Elon Musk's Tesla's AI Licensing/Services Businesses Has Upside Depending On How Well It Executes: Goldman Sachs
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst Mark Delaney maintains a Neutral rating on Tesla Inc (TSLA) with a price target of $235. Delaney highlights Tesla's potential in AI licensing/services, particularly with its Full Self Driving (FSD) product and Dojo AI training. While acknowledging the competitive landscape, including Nvidia, he suggests Tesla's AI leadership could lead to significant market opportunities if executed well. Delaney estimates Tesla's FSD could generate $50-$100 billion annually by 2030, from the current $1-$3 billion. He forecasts FY23 revenue and EPS slightly below consensus at $96.8 billion and $2.64, respectively. TSLA shares were up 5.60% at $236.23 recently.
November 14, 2023 | 7:34 pm
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Goldman Sachs analyst Mark Delaney reiterates a Neutral rating on Tesla with a $235 price target, citing potential growth in AI licensing/services and FSD. He forecasts significant revenue growth for Tesla's FSD by 2030 and slightly lower FY23 revenue/EPS than consensus.
The analyst's neutral stance and the price target close to the current trading price suggest a balanced view with no immediate strong positive or negative impact expected. The potential for significant revenue growth in AI and FSD services is acknowledged, but the emphasis on execution amidst competition tempers the short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100