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Goldman Reiterates Neutral on Tesla (TSLA) Amid California Regulatory Review

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks on the Market’s Radar. On December 17, Goldman Sachs reiterated a “Neutral” rating on the stock with a $400.00 price target. With Tesla set to face potential regulatory changes in California, analysts see minimal risk to sales and expect business to adjust without any impacts on operations.

In an investor note, the firm highlighted how the State of California has issued a document which states that Tesla may be subject to sales suspension in California for 30 days if it doesn’t change the way it is marketing its Autopilot system.

Pixabay/Public Domain

“Per a Bloomberg report and a document filed by the State of California, Tesla could be suspended from sales in California for 30 days if it does not change how it is marketing its Autopilot system, although this order is stayed for 90 days to give Tesla time to comply.”

Tesla will be able to gain compliance by either abandoning the use of the name “Autopilot” for features that aren’t L3 or higher, or enhancing the Autopilot capabilities to reach an L3 or higher threshold.

“Recall that L3 technology is when vehicles become situationally eyes-off. Our initial view is that we would not expect a disruption to Tesla’s business in California, given that the ruling gives Tesla time to comply, and given that Tesla has changed or used alternative names when marketing ADAS features in the past. Finally, Tesla posted on X that it expects sales in California to continue uninterrupted.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 Buzzing AI Stocks on Wall Street

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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