Goldman Sachs said it expects stronger revenue momentum from Tesla’s vehicle business but higher costs and capital spending could cap upside.
- Goldman Sachs reiterated a ‘Neutral’ rating and a $360 price target, implying about 6% downside from current levels.
- Croatia became the latest country to approve FSD (Supervised)
- EU-wide vote for FSD approval is expected in December.
Tesla’s (TSLA) stock performance will likely hinge more on updates around its AI and robotics businesses than on the company’s near-term earnings, Goldman Sachs said in a note on Tuesday.
Ahead of its third-quarter (Q3) earnings scheduled for October 21, Goldman Sachs argued that investors are likely to focus more on the company’s outlook for Full Self-Driving (FSD), robotaxi, and Optimus humanoid bots than on earnings per share (EPS).
The firm kept its ‘Neutral’ rating on the stock and a $360 price target, implying about 6% downside from current levels, according to Investing.com.
TSLA shares were up around 1% at the time of writing, tracking its third straight session of gains. The stock has gained more than 28% since its July low of $297.38.
Tesla: The Key Catalysts
While FSD has been a subject of much debate, Tesla recently made progress in Europe. Croatia became the latest country to approve FSD (Supervised), joining a list that includes the Netherlands, Belgium, and Slovenia. However, an expected EU-wide vote has been pushed back, with a decision potentially unlikely before December.
Tesla’s robotaxi rollout is also expanding, though more slowly than Musk initially projected. The company has begun putting its purpose-built Cybercab, which has no steering wheel or pedals, into limited service in Austin. Tesla said its Robotaxi network was operating in seven major U.S. metros by the end of the second quarter (Q2).
Tesla is also ramping up Optimus production at its Fremont factory, where it has been installing first-generation manufacturing lines for the humanoid robot. Musk has called humanoid robots a potentially enormous business but recently cautioned that Optimus could be Tesla’s hardest product ever to manufacture at scale because most of its components require entirely new supply chains.
Spending Ramps Ahead Of Q3 Earnings
The company continues to spend heavily on AI. In Q2, Tesla said it expects full-year 2026 capital expenditure to exceed $25 billion, driven by AI compute, robotaxis, Optimus, semiconductor manufacturing and factory expansion. Tesla reported Q2 revenue of $28.24 billion, up 26%, while adjusted EPS came in at $0.33, slightly below Street estimates.
Goldman Sachs said it expects stronger revenue momentum from Tesla’s vehicle business but added that higher costs and capital spending could limit earnings upside. This comes after Tesla delivered 486,532 vehicles in Q3, beating Wall Street estimates.
Retail’s Take On TSLA
Retail sentiment surrounding TSLA on Stocktwits remained ‘bullish’ over the past 24 hours.
Despite the recent recovery, TSLA is down more than 13% so far in 2026 and is the only stock in the Magnificent 7 cohort trading in the red.
Also read: Cathie Wood Loads Up On These Biotech Stocks After Strong Rallies – Unloads $18M Worth Of TWST Shares
For updates and corrections, email newsroom[at]stocktwits[dot]com.<