On Thursday, Goldman Sachs (NYSE:GS) reaffirmed its Neutral rating on Tesla stock (NASDAQ:TSLA) with a steady price target of $345.00. According to InvestingPro data, analyst targets for Tesla currently range from $120 to $528, with the stock trading at a notable P/E ratio of 107x.
Tesla's market capitalization stands at $1.37 trillion, making it a dominant player in the automotive sector. The firm's analysts have updated their views on Tesla's Full Self-Driving (FSD) capabilities and incorporated projections for the year 2027 into their financial model, which now includes a separate analysis of the potential robotaxi business.
Goldman Sachs acknowledges that Tesla's FSD technology has shown significant improvements with the release of Version 13, as evidenced by the firm's own demo ride, crowdsourced data, and evaluations from third parties.
InvestingPro subscribers can access over 20 exclusive ProTips about Tesla, including insights about its financial health score of "GOOD" and its strong cash position relative to debt obligations. These developments support the firm's opinion that Tesla is among the frontrunners in autonomous driving technology. However, the analysts also note that substantial progress is still necessary for FSD to achieve a level of autonomy where drivers can safely take their eyes off the road, such as in L3 autonomy scenarios.
Looking ahead, Goldman Sachs anticipates that Tesla will initiate its robotaxi business in the second half of 2026, projecting revenues of approximately $115 million in 2027. This new venture is expected to be roughly neutral in terms of its impact on Tesla's consolidated earnings per share (EPS).
To deploy the robotaxi service, the analysts expect Tesla to employ remote assistance and geofencing, which are methods currently used by other robotaxi services. They believe that while these strategies may enhance technical performance relative to Tesla's consumer vehicle FSD software, they could also constrain the rate of expansion in the initial years following the launch.
The firm's report suggests that the cautious approach with geofencing and remote assistance could be beneficial for Tesla's robotaxi service in terms of safety and reliability, but it may also limit the service's growth potential in the short term. Despite the potential for a new revenue stream from the robotaxi business, Goldman Sachs' current valuation of Tesla's stock remains unchanged.
The price target of $345.00 reflects the firm's evaluation of Tesla's prospects based on the information available at this time. With revenue of $97.15 billion in the last twelve months and a significant return of 95% over the past year, Tesla continues to demonstrate strong market performance. For comprehensive analysis and detailed financial metrics, investors can access Tesla's full Pro Research Report, available exclusively on InvestingPro.
In other recent news, Tesla Inc. has seen a series of significant developments. The National Highway Traffic Safety Administration (NHTSA) is currently investigating 2.4 million Tesla vehicles equipped with Full Self-Driving (FSD) software, following four reported collisions. This was confirmed by Sean Duffy, the nominee for the Transportation Department's head under President-elect Donald Trump.
In addition, Barclays (LON:BARC) analyst Dan Levy maintained an Equalweight rating on Tesla stock, despite raising the price target from $270 to $325. Stifel analysts have also maintained a Buy rating, following Tesla's impressive revenue of $97.15 billion and the anticipated launch of the "Model 2".
Tesla's global sales of fully electric and plug-in hybrid vehicles surged in 2024, reaching over 17 million according to Rho Motion. However, Europe's largest pension fund, Stichting Pensioenfonds ABP, divested its $585 million stake in Tesla, citing issues with CEO Elon Musk's pay package and working conditions.
Lastly, the US has launched another investigation into 2.6 million Tesla vehicles due to reported accidents linked to a remote driving feature. These recent developments reflect a dynamic period for Tesla, with various factors influencing the company's trajectory.
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