Goldman Sachs cautions Tesla $TSLA and Rivian $RIVN against hasty price reductions, emphasizing the need for careful consideration. Analyst Mark Delaney’s analysis indicates that both companies should approach additional price cuts in the U.S. cautiously, particularly as Tesla’s Model 3/Y is already within the budget of many American consumers, and Rivian primarily caters to a less price-sensitive market with vehicles priced at around $70,000 and above.
Delaney highlights the potential risk of broad-based price reductions, noting that while a 1% price reduction typically leads to a modest increase in volume in the mainstream market, applying similar cuts to the Model 3/Y could negatively impact profit dollars in the short term. Despite this caution, Delaney maintains a price target of $220 for Tesla and $13 for Rivian.
In summary, the analysis suggests that both Tesla and Rivian should exercise prudence in adjusting prices, taking into account the unique dynamics of their targetmarkets and the potential impact on profitability.
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire.I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world.I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas.As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential.I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities.Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
Last reviewed by Abhishek Sharma on August 31, 2026
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