The stock market has been increasingly volatile in the first few months of the year. However, things started to turn upward this week with major geopolitical developments taking place. Amid that, Tesla (TSLA) got an additional boost as Goldman Sachs doubled its stake in the company in Q1, as it bet big on the stock.
The EV manufacturer was one of the poorest performers of the Magnificent 7 in early 2025. It faced a brand crisis as consumers seemingly rebelled against the company, boycotting its products amid Elon Musk’s position in US President Donald Trump’s cabinet. Now, Goldman Sachs has taken advantage of its falling value, buying in on the belief that it could turn things around in a massive way.
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Goldman Sachs Buys In On Tesla: Can Stock Make Good On The Bet?
The US stock market has been increasingly fragile in the early parts of the year. Amid the arrival of America-first tariff policies, there is an uncertainty in the air. Yet, hope for incoming trade deals has led many investors to be optimistic about a turnaround. That faith led the S&P 500 to jump 3% on Tuesday, erasing its 2025 losses.
The dip has not been kind to the Magnificent 7, with mega-cap stocks bearing the brunt of the losses. However, that may be a perfect entry point for some investors or a chance to increase positions. The latter is just what happened, as Tesla (TSLA) was bought up by Goldman Sachs as the firm doubled its stake in the company in Q1.
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According to a recent report, the bank reported holding 26.59 million shares by the end of March. Indeed, that represents a 123% increase from the 11.92 million it held by the end of 2024. Moreover, it is up from the 14.67 million shares it had bought in early 2025.
Altogether, the position is valued at more than $9 billion as it bets big on Tesla. The question is, will the bet pay off? Well, the company’s stock value has increased more than 25% in the last five days to trade at the $347 mark. Moreover, it still has more than 36% upside, with its bullish projection sitting at $470.