Tesla (TSLA) shares edged lower in midday trading Wednesday, slipping 0.5% to $402.75, even as Goldman Sachs raised its second-quarter delivery estimate above consensus. The stock traded between $397.68 and $404.98, trailing a largely flat U.S. market ahead of the Federal Reserve’s interest rate decision.
Goldman raises delivery forecast
Goldman Sachs analyst Mark Delaney lifted the firm’s Q2 delivery estimate to 420,000 vehicles from 405,000, citing stronger-than-expected regional numbers from China, Europe, and other markets. The revised forecast is above the Visible Alpha consensus of 400,000. Delaney maintained a Neutral rating and $375 price target on the stock, noting that deliveries remain the best near-term gauge of demand. However, he pointed out that U.S. demand stayed weak, tempering some of the optimism.
Argentina charging partnership
Tesla and Argentina’s state oil and gas company YPF signed a letter of intent to explore fast-charging networks and energy storage solutions. YPF CEO Horacio Marin visited Tesla’s Gigafactory in Texas during the talks. Citi analyst Andres Cardona said the agreement “tries to leverage on YPF’s leading fuel marketing operation” in Argentina, but noted that charging stations remain scarce in the country, so the deal is unlikely to move significant vehicle volumes in the near term.
Robotaxi competition heats up
Intel’s Mobileye announced plans to launch a U.S. robotaxi business in 2027, intensifying competition in the autonomous ride-hailing market. Mobileye will go head-to-head with Tesla, Alphabet’s Waymo, and Amazon-backed Zoox. Tesla has long pitched its Full Self-Driving (FSD) software and robotaxi ambitions as key drivers of its premium valuation, but the entry of a well-funded rival adds pressure.
Regulatory scrutiny over FSD
Democratic Senators Edward Markey and Richard Blumenthal urged the National Highway Traffic Safety Administration (NHTSA) to investigate Tesla’s self-reported crash data for its Full Self-Driving system. The senators called Tesla’s analysis “weak and misleading,” according to Reuters. NHTSA confirmed it is reviewing the letter. Tesla did not respond to a request for comment. The regulatory overhang adds to investor uncertainty.
European progress
In a positive development for Tesla, Dutch Transportation Minister Vincent Karremans said the Netherlands cleared Tesla’s supervised FSD after “independently verified testing,” rejecting Tesla’s own marketing numbers. That could aid Tesla’s expansion in Europe, but U.S. policy risk remains in place.
Market context
Overall market sentiment was cautious as investors awaited the Fed’s 2 p.m. ET rate decision, with rates expected to remain at 3.50%-3.75%. “I’m of the camp that the Fed should really continue to take a wait-and-see approach,” said Jack Ablin, chief investment officer at Cresset Capital Management. The Nasdaq Composite held near the flat line late morning.
