Goldman Sachs’ projections on automotive industry are updated: ‘We prefer TSLA and GM’

Updated expectations of Goldman Sachs on the auto industry have been recently made available to public. The company’s forecasts have been corrected to disclose the current market situation, which is complicated by hurdles in both financial and macroeconomic aspects, while the electric car industry has gained additional policy support, including the loosening of chip restrictions. In general, the Goldman Sachs expectations on the worldwide levels of automobile production and sales for the following three years have been lowered for some degree. At the same time, their projections on the electric car industry have been raised.

Both Tesla and General Motors were named by Goldman Sachs’ analysts as preferred companies.

Concerning Tesla, the Goldman Sachs’ experts suggest deliveries to reach the levels of 461K in the fourth quarter, which is a higher estimation than the one made by Street. The Street’s forecast is 425-450K. Projections weren’t altered after the third quarter report of Tesla’s delivery was published. As it was stated by analyst Mark Delaney, the electric car company is likely to take advantage from its impressive backlog and improvement of supply, although there are certain significant risks, including a growing possibility of the overall slowdown of macroeconomic demand, as well as a possibility of American customers postponing their orders for the next year due to the IRA.