Bank of America just raised its EUR/USD forecast
On Tuesday, Goldman Sachs reaffirmed its Neutral rating on Tesla stock (NASDAQ:TSLA), maintaining a price target of $235.00. According to InvestingPro data, Tesla currently trades at $280.26, with a market capitalization of $902.71 billion and a P/E ratio of 147.65, suggesting a premium valuation compared to industry peers. The stance comes in light of Tesla’s recent update to its Full Self-Driving (FSD) software in China, which introduced features such as automatic lane change, traffic light detection, and turning capabilities. This software update was pushed to users who had purchased the FSD package, priced at approximately ¥64,000 or ~$8,750 USD.
Tesla has reportedly launched supervised FSD in China, utilizing its existing software with only minimal local data adaptations. Although the FSD software has been noted to perform better in the US, where Tesla has more refined data, reviews indicate that the FSD functionality in China is comparatively successful despite limitations in data collection. However, some reviewers have pointed out issues with the system’s understanding of local traffic regulations, including improper lane usage.
The analyst highlighted that Tesla’s FSD is one of many Advanced Driver-Assistance Systems (ADAS) available to Chinese consumers, with several local competitors offering similar features as standard. The future of Tesla’s FSD technology, particularly in terms of cost and technology advancements relative to competitors, is seen as a critical factor for the company’s long-term economic prospects in the field of autonomy. Tesla maintains a strong financial position with last twelve months revenue of $95.72 billion and a gross profit margin of 17.66%. InvestingPro analysis indicates the company’s overall financial health score is GOOD, supported by strong cash flows and solid balance sheet metrics.
Additionally, there have been reports that China is seeking to implement stricter regulations on the testing, deployment, and marketing of smart driving features. Tesla has expressed intentions to expand its robotaxi services, starting with a planned launch in Texas in June 2025. The company’s cost of goods sold (COGS) per vehicle globally was about $35.5K in the first quarter of 2025, and its HW4-equipped vehicles are purportedly ready for Level 4 autonomous driving.
Should Tesla venture into the robotaxi market in China, it would encounter a competitive environment with several autonomous vehicles (AVs) offering compelling costs. The firm suggests that technology development, scaling and cost efficiencies, along with regulatory approvals, will be crucial elements to watch in evaluating Tesla’s potential success with robotaxis in China. For deeper insights into Tesla’s financial health and growth prospects, including over 20 key ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) reported quarterly results that exceeded expectations, leading to significant premarket trading gains of 8.1% and 6.9%, respectively. Microsoft’s success was driven by its cloud business, which continues to benefit from rising demand for AI services. Meta not only surpassed earnings expectations but also increased its full-year forecast for capital expenditures, focusing on AI investments. In contrast, Apple shares (NASDAQ:AAPL) fell by 1.6% after a federal judge ruled that the company violated a court order related to its App Store. Meanwhile, Tesla’s new car sales in Sweden dropped sharply by 80.7% in April compared to the previous year, according to Mobility Sweden. In Italy, Tesla’s car registrations rose by 29% in April, although the overall registrations for the year were down by 4%. Nvidia (NASDAQ:NVDA) led a decline among the "Magnificent Seven" stocks, with its shares falling by 1.5% amid uncertainties about trade policy and economic direction. Lastly, President Trump’s announcement of a 100% tariff on overseas film productions is expected to impact media companies’ profitability.
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