Goldman Sachs released a report on Tesla (TSLA, Financial), highlighting a mixed performance in its latest earnings. The company's non-GAAP earnings per share for the first quarter were $0.27, falling short of the market expectation of $0.41. Despite the uncertainty due to tariffs preventing Tesla from providing formal guidance, Goldman Sachs noted positive aspects, such as higher-than-expected non-GAAP automotive gross margins excluding regulatory credits. Tesla also plans to launch its robotaxi operations soon, albeit on a small scale.
Goldman Sachs pointed out potential risks in the mid-term market forecasts due to tariff costs and demand considerations. They have revised their forecasts downward to reflect reduced car sales and higher operating expenses while maintaining a "neutral" rating for the stock. The increase in revenue from Tesla's FSD software is expected to partially offset the downside risks. As a result, the target price for Tesla has been lowered from $260 to $235.
