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Elon Musk's robotaxi reveal could supercharge Tesla stock - Goldman

EditorEmilio Ghigini
Published 23/09/2024, 10:24
© Reuters.
TSLA
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On Monday, Goldman Sachs maintained a Neutral rating on Tesla (NASDAQ:TSLA) stock with a steady price target of $230.00. The firm's projection is based on the anticipated vehicle delivery report and an upcoming event where Tesla is set to unveil its robotaxi.

The third-quarter vehicle deliveries for Tesla are estimated to reach approximately 460,000 units, a 4% increase from the previous quarter and a 6% rise year-over-year. This forecast aligns with the consensus data from Visible Alpha.

The investment firm is closely monitoring the potential impact of Tesla's robotaxi reveal, scheduled for an event on October 10 in the Los Angeles area. Key points of interest for investors include the timeline for the robotaxi's commercial operations, considering technological, operational, and regulatory aspects, as well as Tesla's competitive cost structure in relation to its peers.

Investors are also eager to learn whether Tesla will provide further details or introduce a new lower-cost model during the October 10 event. These developments are significant as they could influence Tesla's business outlook and market positioning.

The anticipation surrounding Tesla's expansion into robotaxis and potential updates on new models underscores the company's innovative approach to the automotive and transportation industries. Tesla's ability to meet delivery expectations and successfully launch new ventures remains a focal point for investors and market analysts alike. The upcoming event is expected to shed light on the company's future direction and its readiness to tackle new market segments.

In other recent news, Tesla Inc. is maintaining a positive outlook with BofA Securities reiterating a Buy rating and a $255.00 price target. The firm is emphasizing the upcoming Robotaxi Event, scheduled for October 10, 2024, which is expected to provide valuable insights into Tesla's Full Self Driving technology. However, BofA Securities anticipates that a robotaxi service from Tesla may not be available until 2025 or later.

Meanwhile, Tesla experienced a decline in sales as the European Union saw a notable downturn in new car sales, with a significant 18.3% decrease. Electric vehicle sales also faced a steep drop of 44%. Despite this, employees at Tesla showed a preference for Democratic presidential candidate Kamala Harris, contributing more to her campaign than to that of Republican former President Donald Trump.

Morgan Stanley maintained its Overweight rating on Tesla shares, suggesting that rising greenhouse gas emissions from global data centers could indirectly benefit Tesla's energy segment. The firm's analysis indicates a significant increase in emissions from data centers by 2030. These are among the recent developments for Tesla, as reported by independent sources.


InvestingPro Insights


As investors and analysts anticipate Tesla's upcoming robotaxi event and its impact on the company's future, recent data from InvestingPro provides a snapshot of Tesla's financial health and market performance. With a robust market capitalization of $761.12 billion, Tesla's financial strength is evident. However, its current P/E ratio stands at a high 61.43, suggesting that the stock is trading at a premium relative to its earnings. This high earnings multiple may be indicative of investor confidence in Tesla's growth prospects, despite the company's weak gross profit margins of 17.72% over the last twelve months as of Q2 2024.

InvestingPro Tips highlight that Tesla holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations, providing the company with a solid liquidity position. Furthermore, Tesla's cash flows can sufficiently cover interest payments, which is a positive sign for its financial stability. For those interested in a deeper dive into Tesla's financial metrics and future projections, InvestingPro offers additional tips, with 19 more tips available for Tesla at https://www.investing.com/pro/TSLA.

As the market processes Goldman Sachs' neutral stance and price target, these InvestingPro metrics and tips offer valuable context for understanding Tesla's valuation and financial status, which are key factors to consider ahead of the company's vehicle delivery report and robotaxi reveal.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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