Tesla (TSLA, Financial) shares fell over 1%, closing at $336.89. Goldman Sachs reiterated its "neutral" rating on Tesla, maintaining a 12-month price target of $285. They caution investors against being overly optimistic about Tesla's Robotaxi initiative. Initial trials revealed navigation and driving issues, with staff still required inside the cars, indicating challenges in scaling the service.
Additionally, Tesla's current U.S. stock valuation may already reflect anticipated autonomous driving profits. Intense competition in the Chinese market could further compress Tesla's profit margins. In Europe, data from the European Automobile Manufacturers Association showed a significant 40.5% year-over-year drop in Tesla's new car registrations in May, totaling 8,729 units, marking the fifth consecutive month of sharp declines.
