Goldman Sachs has revised its price target for Luminar Technologies (LAZR, Financial), lowering it to $2 from a previous target of $3.50. Despite the reduction, the firm maintains a Sell rating on Luminar's shares. This decision comes in the context of a broader downgrade in Goldman Sachs' outlook for the automotive industry.
The firm cites challenges such as the difficulty in passing on tariff costs amidst weakening consumer demand as key factors affecting the sector. While vehicle manufacturers may partially offset tariff impacts through pricing strategies, Goldman Sachs indicates that these measures might not fully counterbalance the economic pressures.
Further influencing the revised estimates are the growing influence of Chinese car manufacturers and a deceleration in the adoption of electric vehicles in both the United States and potentially Europe. These dynamics suggest shifting competitive landscapes and consumer preferences, which underscore the need for caution in investment approaches within the auto industry.
