Goldman Sachs, a leading global investment bank, has forecasted that Tesla and Rivian will dominate the autonomous vehicle market next year. The firm has also raised its target stock prices for both companies.
On Friday, Goldman Sachs increased Tesla’s target price from $250 to $345, while Rivian’s target price was raised from $12 to $13. However, the investment bank maintained a neutral rating on both companies’ stocks.
Goldman Sachs anticipates that Tesla and Rivian will dominate the self-driving car market in the coming year. Next year, Tesla plans to launch a robotaxi service using its Model 3 and Model Y vehicles in Texas or California. Additionally, Tesla intends to begin producing its Cybercab robotaxis the following year.
Notably, Goldman Sachs analysts believe that greater clarity in federal regulations for consumer vehicles will benefit Tesla’s push to expand its Level 4 autonomous vehicle offerings.
Rivian recently introduced its Autonomy+ platform, which includes Level 2 autonomous driving capabilities. Although it was initially launched as a free trial, Rivian plans to monetize the platform, potentially creating a new revenue stream for the electric truck maker.
Goldman Sachs predicts continued advancements in the autonomous vehicle sector, including the introduction of robotaxis. The firm projects that vehicles with Level 3 autonomous driving features will account for around 10% of new car sales by 2030.
While fully autonomous vehicles (Level 4 and Level 5) are expected to remain scarce in the short term, Goldman Sachs forecasts that sales will surpass 1 million units by 2028 and exceed 2 million units by 2030.
Looking ahead, the investment bank projects that by 2040, fully autonomous vehicles, including privately owned Level 4 vehicles, will make up over 15% of global vehicle sales.
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