Goldman Sachs Lowers Price Target to $375, Maintains Hold Rating
A Goldman Sachs analyst lowered his price target on the stock by $30 but maintained a “hold” rating after the underwhelming first-quarter delivery numbers. Going into the delivery report, the Wall Street consensus called for Model 3/Y deliveries of 351,179 and total deliveries of 365,645. Unfortunately, Tesla missed these numbers, coming in with 341,893 and 358,023.
Tesla deliveries are growing.
Given that Tesla is discontinuing the Model S and Model X (reported in the “other’ category), it’s a good idea to focus on the 3/Y deliveries. The bad news is that they missed estimates, and the good news is that they increased by 5.6% over the first quarter of 2025. This proves the point that weak sales in the first half of 2025 really were all about the transition to a new Model Y.
More color is needed on the earnings call.
There was also some disappointing news on energy storage deployment in the first quarter, which came in at 8.8 GWh, below the Wall Street analyst consensus of 14.4 GWh. However, energy storage can be lumpy, and investors should look out for management discussion of the matter.
Similarly, while there’s no way to sugarcoat the disappointing delivery numbers, the monthly cadence through the quarter would be fascinating to know, not least because the war in Iran has resulted in a big jump in gasoline prices, which should favor electric vehicle companies. I’ll be back to monitor events.