Tesla's Autonomous Driving Efforts Win Praise From Goldman Sachs: Wall Street Firm Projects Long-Term Growth From Robotaxi Services
Portfolio Pulse from Piero Cingari
Goldman Sachs has praised Tesla Inc. (NASDAQ:TSLA) for its leadership in autonomy and ADAS, projecting significant long-term growth from software and digital services, including robotaxi services. Despite the optimism, Goldman Sachs maintains a Neutral rating on Tesla due to full valuation and weaker near-term fundamentals, with a price target of $175. The firm highlights the potential of Tesla's Full Self Driving (FSD) and robotaxi services but notes the challenges in achieving higher levels of autonomy and regulatory hurdles. The rideshare market is expected to grow substantially, offering revenue opportunities for Tesla's robotaxi fleet.
April 18, 2024 | 1:31 pm
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Goldman Sachs projects long-term growth for Tesla from its autonomy and ADAS efforts, setting a $175 price target. Despite a Neutral rating due to valuation and near-term challenges, the potential for significant revenue from robotaxi services and FSD is highlighted.
Goldman Sachs' recognition of Tesla's leadership in autonomy and ADAS, along with the projection of significant growth from software and digital services, suggests a positive outlook for Tesla's stock in the long term. However, the Neutral rating reflects the current valuation and near-term fundamentals, indicating that while growth prospects are strong, there are immediate challenges that could affect the stock's short-term performance. The detailed analysis of potential revenue from robotaxi services and the rideshare market's growth prospects further underline the importance of Tesla's advancements in these areas for its future valuation.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100