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Investing.com - Goldman Sachs has reiterated its Neutral rating and $285.00 price target on Tesla (NASDAQ:TSLA), currently trading at $321.67, following the company’s announcement of a new vehicle variant. According to InvestingPro data, analyst targets range from $115 to $500, with Tesla currently trading above its Fair Value estimate.
Tesla announced on July 16 that it will launch the Model YL, a slightly longer and taller version of its current Model Y SUV. The new variant will be approximately 7 inches longer and 1.5-2 inches taller than the standard Model Y.
The investment bank believes the Model YL will allow Tesla to compete more effectively in the three-row SUV market. Tesla expects the new model to be available in China this fall.
Goldman Sachs considers the announcement an "incremental positive" for Tesla, noting the Model YL appears more differentiated from Tesla’s current product lineup than what investors had recently expected for new model launches this year.
The bank indicated that a common view among investors had been that Tesla would launch a cost-reduced and possibly smaller variant of the Model Y, rather than a vehicle better positioned to address the three-row SUV market.
In other recent news, Tesla is preparing to release its earnings report, with Barclays (LON:BARC) maintaining its Equalweight rating and a $275 price target. The firm highlighted weaker fundamentals, noting expectations for improved auto margins compared to the previous quarter but still lower than in past years. Barclays predicts a significant volume decline for Tesla by 2025 and has adjusted its earnings per share estimates for that year from over $3.20 to $1.84. Meanwhile, Tesla is set to launch a new six-seater Model Y L in China this fall, as confirmed by regulatory filings and company announcements. This model appears to be tailored specifically for the Chinese market. Gene Munster from Deepwater Asset Management suggests that Tesla’s future in autonomous vehicles will rely on advancements in computing hardware, with new hardware generations such as HW4 and the upcoming HW5 playing a crucial role. Munster also speculates that Tesla might offer refunds to customers who purchased Full Self-Driving on older hardware models. Lastly, Tesla’s CEO, Elon Musk, is expected to discuss potential fleet growth and expansion plans during the upcoming earnings call, which could influence investor sentiment.
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