Tesla continues to develop its artificial intelligence (AI) capabilities and Full Self-Driving (FSD), which was noted by Goldman Sachs. The firm’s analysts noted that the company’s revenue from its fleet with FSD could reach up to $100 billion per year by 2030.
The development of artificial intelligence continues to gain momentum around the world. Tesla is one of the companies that has been actively working on this over the past years and has achieved significant success, which was noted by analysts at Goldman Sachs. They emphasized that investor interest in the company’s potential in the field of artificial intelligence has recently increased sharply. In recent years, the company has been holding several AI days, where it told investors about its achievements. However, another important goal of hosting these events was to recruit the best talent in the field.
Analysts at Goldman Sachs believe Tesla has a strong foundation to become a leader in artificial intelligence technologies. In a note to clients, they wrote that their confidence stems from the company’s extensive resources and exceptional engineering talent in chip design, software, hardware, and data science, according to investing.com.
Goldman Sachs expects Tesla’s leadership in AI to help the company expand its FSD capabilities, particularly for its own fleet. Elon Musk previously noted that in the future, the manufacturer will receive significant income from FSD technology, so Tesla is seeking to increase the number of its cars on the roads.
Goldman Sachs believes their current price target of $235 reflects Tesla’s future potential for growth in new high-margin areas, especially its own fleet. The firm anticipates that the company could gain greater traction in other segments before adding value to FSD licensing or potentially providing Dojo as a service. If Tesla successfully seizes these opportunities, Goldman Sachs believes the market potential could be significant.
“We believe in an upside case FSD could be $50-100 bn a year of revenue from Tesla’s fleet by 2030, up from what we believe is $1-3 bn per year presently,” Goldman Sachs analysts wrote in a note.