Goldman Sachs notes Tesla can face different challenges with self-driving cars in China versus America. The bank keeps its neutral rating with a $235 price target for Tesla stock. The company launched full self-driving features in China despite having limited driving data from Chinese roads. Tesla stock climbed 23% after earnings when Elon Musk promised to focus more on the car company.
According to Goldman, Tesla might introduce robot taxis in Texas this June. Chinese drivers have many self-driving options beyond Tesla products. Success depends on Tesla making better technology at lower costs than rivals. American buyers might prefer Tesla robot taxis because manufacturing costs could stay lower than competitors. Chinese markets already offer several affordable self-driving cars.
Tesla claims its newer vehicles contain all the hardware needed for level 4 autonomy—cars that drive without human help. The company must deal with regulations, costs, and technical issues to succeed in China. Musk said during earnings calls that safety remains the main focus before expanding self-driving features across America. Bank analysts believe Tesla will carefully launch robot taxi services rather than rush them.
According to Goldman, Tesla might introduce robot taxis in Texas this June. Chinese drivers have many self-driving options beyond Tesla products. Success depends on Tesla making better technology at lower costs than rivals. American buyers might prefer Tesla robot taxis because manufacturing costs could stay lower than competitors. Chinese markets already offer several affordable self-driving cars.
Tesla claims its newer vehicles contain all the hardware needed for level 4 autonomy—cars that drive without human help. The company must deal with regulations, costs, and technical issues to succeed in China. Musk said during earnings calls that safety remains the main focus before expanding self-driving features across America. Bank analysts believe Tesla will carefully launch robot taxi services rather than rush them.
