On Wednesday Eastern Time, as Tesla's stock price closed higher for the 11th consecutive trading day, Tesla has fully recovered all the losses from the beginning of the year to the present.
Amid the excitement of Tesla shareholders, Goldman Sachs analysts raised their target price for Tesla stock, bringing more cheers to this bullish feast.
Tesla's low-priced models will be key
On Wednesday Eastern Time, Goldman Sachs raised its target price for Tesla from $175 to $248, while maintaining a neutral rating for the stock.
Goldman Sachs pointed out that data released by Tesla in early July showed that the company delivered 443900 vehicles in the second quarter, better than analysts' estimated 439300 vehicles, which is the main reason for Goldman Sachs' shift in attitude towards Tesla.
At the same time, Tesla's potential release of Robotaxi and low-cost models in the future may contribute to Tesla's further growth.
Despite the increasingly fierce competition in the global electric vehicle market, Goldman Sachs analysts say that considering Tesla's existing customer base, various products such as cars, software, and charging technology, as well as plans to release low-cost models before next year, Tesla remains in a dominant position in the industry.
Robotaxi will bring a new round of growth momentum
Goldman Sachs analysts wrote in a report that Tesla's expected release of low-cost models may have a positive impact on Tesla's market share.
Goldman Sachs analysts say that their statistics show that about half of the global car buying market is currently dominated by low-priced cars priced at $30000 or less. Therefore, if Tesla can launch a cheaper car, it will help it compete with Chinese competitors.
In addition to low-cost models, Tesla's robot taxi Robotaxi is also a focus of attention for Goldman Sachs.
Tesla plans to release its financial report after the close on July 23rd, and on August 8th, Tesla plans to hold its debut event for the Tesla Robot Taxi. It is expected that Tesla CEO Musk will disclose more details about the robot taxi in advance at the July financial report meeting.
Goldman Sachs analysts point out that Tesla's continuously developing autonomous driving software and the planned launch of autonomous taxis next month are future growth areas.
But they also believe that it will take some time to promote the widespread adoption of autonomous taxis or to make traditional Tesla cars fully autonomous.
The market environment remains weak
Although Goldman Sachs has raised Tesla's target price from $175 to $248, after Tesla's recent surge, this target price is already lower than Tesla's current stock price.
On Wednesday Eastern Time, Tesla's stock price rose 0.35% to close at $263.26. The stock has risen by a cumulative 44% in the past 11 trading days.
Goldman Sachs analysts wrote, "Although we still believe that Tesla is in a favorable position for long-term growth given its strong position in the electric vehicle and clean energy markets, we anticipate that a weak market environment will drag down the company's performance in the short to medium term."