5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Goldman Sachs has reiterated its Neutral rating on Tesla (NASDAQ:TSLA) with a price target of $400.00 following the company’s recent earnings report. The electric vehicle giant, currently valued at $1.46 trillion and trading near $439, is showing signs of being overvalued according to InvestingPro analysis.
Tesla reported revenue of $28.1 billion and non-GAAP earnings per share of $0.50, with revenue exceeding Street expectations by 6% while EPS fell $0.06 below consensus estimates. The automotive non-GAAP gross margin came in at 15.4%, below the consensus expectation of approximately 16%. InvestingPro data shows the company’s overall gross profit margin stands at 17.48%, reflecting ongoing margin pressure in the competitive EV market.
Goldman Sachs characterized the third-quarter report as "mixed to slightly negative" relative to key investor focus areas, noting that while overall revenue and gross margin exceeded consensus, certain key performance indicators fell short of investor expectations, including the automotive gross margin and EPS figures. Despite these challenges, Tesla maintains a "GOOD" overall financial health score according to InvestingPro’s comprehensive analysis, with particularly strong scores in price momentum and cash flow metrics.
The investment bank anticipates potential volatility for Tesla stock in the near to medium term, with several upcoming catalysts including the November 6 shareholder meeting, potential removal of safety observers from robotaxis in Austin before year-end, fourth-quarter automotive deliveries, and the unveiling of Optimus 3, which may now occur in the first quarter.
Goldman Sachs maintains its Neutral stance on Tesla, projecting meaningful long-term EPS growth driven partly by larger contributions from autonomy and robotics, though the firm’s profit expectations in these areas are "more measured than the company is targeting."
In other recent news, Tesla reported its third-quarter 2025 financial results with revenue reaching $28.1 billion, surpassing expectations by 7.17%. However, the company’s earnings per share (EPS) came in at $0.50, falling short of the anticipated $0.54. Following the earnings report, Mizuho raised its price target for Tesla to $485, highlighting the potential in AI and Full Self-Driving (FSD) technology, while maintaining an Outperform rating. TD Cowen reiterated its Buy rating with a price target of $509, citing advancements in autonomous vehicles as a positive factor.
Conversely, Wells Fargo maintained an Underweight rating with a $120 price target, pointing to Tesla’s EPS miss and high operating expenses as areas of concern. Piper Sandler kept its Overweight rating with a $500 price target, noting record deliveries and free cash flow despite the EPS shortfall. These developments reflect a mix of cautious and optimistic perspectives from analysts on Tesla’s performance and future potential.
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