As the company’s stock continues to rise this month, Tesla (TSLA) is eyeing its sixth straight day of gains, as Goldman Sachs analysts have recently said they remain “cautious” about the company’s value. The electric vehicle manufacturer (EV) has been surging since November. Now, it aims to be one of the biggest winners of the current month as well.
With its Robotaxi announcement and Elon Musk’s connection to US President-elect Donald Trump, there are a lot of reasons to be excited about Tesla’s potential. That has been justified by the surge in stock price over the last several weeks. Yet, one of the largest investment banks in the country has shared the reason they aren’t quite sold on the stock.
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Tesla Looks to Continue a Week of Winning as Analysts Question Its Value
It has proven to be a massive run for Tesla over the last month. Elon Musk’s close connection to Donald Trump on the 2024 campaign trail proved to be invaluable for his EV company. The stock has continued to set records and traded at heights of $417 Wednesday.
That performance has Tesla eyeing its sixth straight day of gains; so why has Goldman Sachs said it’s cautious about the stock? In a recent note, the investment bank kept TSLA with a neutral rating. Additionally, they discussed a series of challenges the company will have to overcome ahead of 2025.
Also Read: Tesla Eyes Its Best Month Ever Amid 33% Stock Value Surge
“We expect it to face headwinds in the core auto business over the near to medium term,” analyst Mark Delaney said according to an MSN report. Moreover, he noted that self-driving car progress is expected to be gradual. With so many excited about the autonomous project, he underscores its immediate effect on value.
Additionally, Delaney called Tesla’s valuation “full” while still expecting it to trade at a higher multiple. Specifically, they note this was going to take place because of its long-term prospects in key technological areas. The Musk-led firm is at the forefront of robotics and will likely benefit on Wall Street due to its potential AI benefits.
