Goldman Sachs Cuts 2025 US Auto Sale Estimates By About A Million, Slashes Price Targets For Ford, GM, Tesla

Goldman Sachs on Thursday cut its estimates for automobile sales in the U.S. in 2025 by nearly one million to 15.40 million units in light of President Donald Trump’s tariffs while simultaneously slashing price targets on multiple automakers.

"We believe the tariffs as proposed will raise the cost of both importing and manufacturing vehicles in the U.S. by at least a low to mid single digit thousand dollar level on average," the analysts said, as reported by Reuters.

The report noted that Goldman Sachs expects net price of new vehicles in the U.S. to rise by about $2,000 to $4,000 over the next 6-12 months as car manufacturers pass on tariff-related costs.

The firm also cut its estimates for 2026 vehicle sales in the U.S. by 1.1 million to 15.25 million units.

Auto tariffs of 25%, applicable on vehicles imported into the U.S., became effective last week. Tariffs on auto suppliers are expected to follow.

Goldman Sachs cut price targets on Ford, General Motors, Tesla, and Rivian Automotive on Thursday after noting that the tariffs will be a downside for both automakers and auto suppliers.

Although car makers can partly mitigate them by changing pricing, it will be hard for the auto industry to fully pass on costs given softening consumer demand, Goldman Sachs noted, as per TheFly.

In addition to slashing Ford’s price target to $9 from $11, the firm also downgraded the stock to ‘Neutral’ from ‘Buy’.

It noted that Ford recently outperformed peers and trades at an expanded relative valuation multiple versus peers.

On Stocktwits, retail sentiment around Ford fell 10 points into the ‘extremely bearish’ territory while message volume remained low over the past 24 hours.  

Ford stock has been down over 5% this year and nearly 30% over the past 12 months.

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