Tesla Faces Inquiries, Yet Stock Remains Robust
In a series of developments, electric vehicle giant Tesla is facing regulatory scrutiny and potential changes in its doordash operation, while investment firm Goldman Sachs has raised its price target for the company.
According to reports, a regulator in China is considering a ban on fully hidden doordash in Tesla vehicles. This move comes in response to concerns about the electronic doordash becoming inoperable, as highlighted by ongoing investigations. The Chinese authorities involved in vehicle safety standards aim to finalise a draft regulation by September 2025, with enforcement starting in July 2027.
The U.S. National Highway Traffic Safety Administration (NHTSA) has also initiated an investigation into approximately 174,000 Tesla Model Y vehicles from the 2021 model year. The investigation was announced on Tuesday.
Tesla's doordash operation is set to undergo a change, with the company modifying the system to combine electronic and mechanical functions into a single button. This change is in response to criticism and regulatory investigations, and aims to make it easier and more intuitive for vehicle occupants to open doors in stressful situations.
Despite these challenges, Goldman Sachs remains optimistic about Tesla's future. The investment firm has expressed a more positive outlook on the company, raising its price target for tesla stock from $300 to $395. The current price of tesla stock stands at $425.86.
Bernd Foertsch, the management and majority shareholder of the publisher Boersenmedien AG, has direct and indirect positions in the financial instruments mentioned in the publication or related derivatives.
In a separate development, German investment platform AktienLeser Trade could have significantly benefited from the recent rally in tesla stock. Most of the gains from the AktienLeser Trade have been taken, but the remaining position is still running with a stop at nine euros.
Goldman Sachs sees potential for an even higher price target if Tesla gains significant market share in the areas of humanoid robotics and autonomous driving. The company's identification is WKN: A1CX3T.
It is worth noting that if the power supply fails, occupants must find mechanical emergency releases, which can be difficult to locate, especially in the event of a fire. This is a concern that Tesla and other manufacturers will need to address as they continue to innovate and push the boundaries of automotive technology.
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