07.06.2025

Goldman Sachs warns: Tesla’s delivery and profit weakness as a signal for investors

The current warning from Goldman Sachs regarding Tesla’s declining deliveries and profits carries important implications for investors. Here are some key aspects that investors should consider:

Background of the Warning

Goldman Sachs has lowered its price target for Tesla from $295 to $285 while maintaining a neutral rating. This adjustment reflects concerning developments in Tesla’s delivery figures and profit forecasts.

Delivery Development

In the United States, deliveries in the current quarter have fallen by medium double-digit percentages up to May. In Europe, there was a decrease of about 50% in April compared to the previous year, while May saw a decline of about 20%. In China, there were slight increases in April and May compared to the previous month, but a decline of about 20% year over year was recorded.

Financial Situation

Despite these challenges, Tesla has a strong financial foundation with revenues of $95.7 billion last year and a market capitalization of $917 billion.

Impact on Investors

The reduction in the price target may affect investor confidence in Tesla. This raises concerns about the company’s ability to meet its set targets. The stock price is currently trading near the new price target, indicating that the market has already priced in these concerns.

Other Factors

Current political tensions, such as the online dispute between Elon Musk and Donald Trump, can also exert pressure on the stock price. However, Wedbush analysts see opportunities for a recovery if these tensions are addressed.

Overall, the warning highlights that Tesla faces significant challenges that could impact investor confidence. Nevertheless, the company remains a dominant force in the electric vehicle market.