Goldman Reiterates Neutral on Tesla (TSLA) Amid California Regulatory Review

Core Viewpoint - Tesla, Inc. is facing potential regulatory changes in California regarding its Autopilot marketing, but analysts expect minimal impact on sales and operations [1][4]. Regulatory Changes - The State of California has issued a document indicating that Tesla may face a 30-day sales suspension if it does not alter its marketing approach for the Autopilot system [2]. - Tesla has a 90-day period to comply with the order, which can be achieved by either changing the name "Autopilot" for features below L3 or enhancing the Autopilot capabilities to meet L3 standards [3]. Business Impact - Analysts do not anticipate a disruption to Tesla's business in California due to the compliance period and the company's history of adapting its marketing strategies [4]. - Tesla has communicated its expectation for uninterrupted sales in California despite the regulatory scrutiny [4].