Goldman Sachs analyst: Tesla may cut prices further next year

CTOnews.com, Sept. 18 (Xinhua) in a report released on Sunday, Goldman Sachs lowered its earnings forecast for Tesla, saying the electric car company's price cut could hamper its earnings per share (EPS).

"We believe that Tesla may further reduce prices in 2024 to get higher sales, which will weaken EPS growth brought about by lower costs," Mark Delaney, an analyst at Tuyuan Pexels Goldman Sachs, wrote.

Delaney forecasts Tesla's earnings per share for the rest of 2023 and 2024 to be $2.90 and $4.15, respectively, down from $3 and $4.25. Delaney wrote that the downgrade was due to Tesla's goal of increasing production. He believes that higher production will affect gross margins before national incentives and tax credits under the inflation reduction Act (IRA) are taken into account.

CTOnews.com noted that Delaney maintained his neutral rating on Tesla and reiterated his target price of $275.