Goldman Sachs Tempers Investor Excitement On Tesla Self-Driving Tech In China: 'Not Yet An Eyes-Off, Unsupervised Product'
Portfolio Pulse from Piero Cingari
Goldman Sachs analyst Mark Delaney commented that Tesla Inc's Full Self-Driving (FSD) technology is not yet fully autonomous, despite the company's recent regulatory approval in China and partnership with Baidu Inc. for FSD service in China. Delaney views the China news as positive but has already factored the anticipated FSD/software revenue growth into Goldman Sachs' valuation of Tesla. Tesla's stock saw a significant increase following the approval. However, Delaney cautions about the challenges Tesla faces in adapting its FSD technology for China, including local adjustments and regulatory navigation. Goldman Sachs maintains a $175 price target for Tesla, with optimistic and downside scenarios ranging from $220-$300 and $65-$85, respectively.
April 30, 2024 | 1:01 pm
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NEUTRAL IMPACT
Baidu Inc. partners with Tesla for FSD service in China, a move seen as positive by Goldman Sachs. However, the partnership's impact on Baidu's stock is not directly addressed, focusing more on Tesla's challenges and opportunities in China.
While the partnership with Tesla for FSD service in China is a positive development for Baidu, the article focuses more on the implications for Tesla, including the challenges and opportunities in the Chinese market. The direct impact on Baidu's stock is less clear from the information provided.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Tesla's FSD technology is not fully autonomous yet, according to Goldman Sachs, despite recent regulatory approval in China and partnership with Baidu. The stock saw a significant increase, but challenges in China could impact future performance.
Tesla's stock increase following the regulatory approval in China is a positive sign, but Goldman Sachs' caution about the challenges in adapting FSD technology for the Chinese market and navigating regulatory issues could temper investor enthusiasm in the short term. The analyst's price target and scenarios indicate a balanced view of potential growth and risks.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90