Don't expect much from Tesla going forward, according to Goldman Sachs. Analyst Mark Delaney lowered his price target by $10 to $285, which implies just 0.1% upside, while reiterating his neutral rating on the stock. Delaney cited Tesla's falling global sales as the key reason behind his lower estimates on the stock. "We're lowering our Tesla vehicle delivery assumptions and EPS estimates to better reflect weaker monthly datapoints in key regions (e.g. China, the US, and Europe)," he wrote in a Thursday note to clients. "Industry and registration data through May suggests continued yoy weakness in deliveries in key geographies." Delaney said deliveries this quarter are tracking lower for the U.S. and pointed out that European sales notably saw a 50% year-over-year decline in April, and an additional double-digit decline in May. Last month, Tesla's sales dropped for the fifth straight month in Britain, Germany and Italy. China sales from April and May indicate a small increase relative to the first two months of this year, but still represent a 20% year-over-year decline, he said. TSLA 1Y mountain Tesla stock over the past year. Delaney also attributed his lower price target to consumer data from data and analytics companies HundredX and Morning Consult, which reflected weak sentiment for Tesla in North America and Europe, but stronger in China. For example, the survey found that consumers' net purchase consideration levels have dipped in Canada and Europe but remained stable in China. "This suggests to us that demand/brand issues may be contributing to weakness in the US and European markets, and the decline QTD in China could be the result of competition and product cycle timing (with consumers in China potentially waiting for a new lower cost vehicle," he said about the survey results. Tesla shares plummeted 14% in the previous session during an intense online spat between CEO Elon Musk and President Donald Trump, who threatened to pull government contracts for Musk's companies after Musk began to criticize Trump's so-called big, beautiful spending bill. The stock losses amounted to a $152 billion loss from Tesla's market cap on Thursday. Shares of Tesla jumped about 5% in premarket trading Friday as investors scooped up shares of the beaten-down name. Goldman's price target falls below the average price target from analysts polled by LSEG of $289.20. Although Goldman attributed its lower estimates on the stock to its sales troubles, other Wall Street analysts cited the Musk-Trump feud as a reason for the stock to remain under pressure. TD Cowen analyst Itay Michaeli kept his $330 price target on the stock but said "Thursday's events clearly raise the degree of NT uncertainty, including with respect to how political developments might impact Tesla's sales."
