Goldman Sachs Reiterates Neutral Rating on Tesla

Goldman Sachs analyst Mark Delaney reiterated on December 17, 2025, its $400 price target on Tesla, while maintaining a ‘Neutral’ rating on the stock.

“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.

Per the state document, in order to gain compliance, Tesla would need to stop using the name Autopilot to describe features that are not L3 or higher, or enhance 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.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.