Goldman Sachs has lowered its price target for Elon Musk’s Tesla. They cited falling sales around the globe, along with a deteriorating consumer mood.
The brokerage company maintained its neutral ratings on Tesla, but lowered the price target to $285.
This represents a 0.10 % increase from the closing price on Thursday.
Goldman Sachs price target also falls below the $289.20 average of analysts polled at LSEG.
Analysts attributed the stock’s decline to Musk’s dispute with US President Donald Trump.
The downward revision is a reflection of the growing concern within investment banks about Tesla’s future. This is due to a combination of data on global deliveries, consumer sentiments in major markets and ongoing political controversy surrounding Elon Musk.
Deliveries in important geographies deteriorate
Mark Delaney, an analyst at Delaney & Associates wrote: “We are lowering our Tesla Vehicle Delivery assumptions and EPS Estimates to better reflect the weaker monthly datapoints for key regions. China, Europe, and the US)” wrote analyst Mark Delaney.
The data from industry and registrations up to May show that deliveries on key markets are still weaker than last year.
Analysts say that the US data is on a downward trend for April. Meanwhile, European sales have seen a 50% drop from last year, and an extra double-digit decrease in May.
Tesla’s sales in Britain, Germany and Italy have been falling for the past five months.
Delaney said that while the China sales for April and May were up a little compared with the first two month of the year it was still down 20% from last year.
Spat between Trump and his supporters wipes $150 Billion Market Value
Tesla shares dropped 14% in one trading session on Thursday. This was the largest drop for Tesla ever.
This move also destroyed $152 billion of investor wealth.
The main reason for this dramatic drop was the intensifying and highly publicized feud between Elon Trump and President Donald Trump.
Musk’s criticisms of Trump’s ‘Big Beautiful Bill’ – a tax and spending package which reportedly seeks reducing tax credits for solar and electric vehicle installations, Tesla’s key business drivers – sparked a rapid and explosive exchange on social networks.
The political spat has not only cast doubt on Tesla’s policies, creating concerns over possible operational restrictions and the potential loss of government assistance, but it also increased investor anxiety about the predictability and stability of the leadership of the company.
Tesla’s shares rose 5% on Friday.
Expectations for the second quarter are lower than expected
Goldman Sachs revised their delivery estimates for Tesla as a result.
Bank now expects Q2 2025 to deliver 365,000 units. This is a significant reduction from the previous estimate of 411,000 and below Visible Alpha Consensus data of 417,000.
Their revised delivery estimates for 2025-2026 and 2027 were also lowered.
The post Goldman Sachs says Tesla’s sales are falling and there is little potential for growth appeared first on ICD
This site is for entertainment only. Click here to read more
