Wednesday, August 16, 2017
Hot Stocks

Published on July 5th, 2017 | by Sofia Vida

0

Tesla Crashes After Goldman Sachs Did This

What should be an exciting month for Tesla with the Model 3 scheduled for deliveries at the end of the month, is instead not looking so great.

The stock just dropped through its 50-day moving average on Wednesday after firm Goldman Sachs reiterated that it has a “sell” rating on the company. According to Goldman Sachs, Tesla will most likely struggle to meet production and profit targets in the second half of 2017.

Goldman Sachs analyst David Tamberrino also cut his price target on the stock to $180 from $190. Looking at current prices, this is almost half.

“We remain sell rated on shares of Tesla where we see potential for downside as the Model 3 launch curve undershoots the company’s production targets and as second-half margins likely disappoint,” Tamberrino wrote in a note to clients.

“This comes as demand for Tesla’s established products (Model S and Model X) appear to be plateauing slightly below a 100,000 annual run rate.”

Earlier this week the electric vehicle maker announced that its Q2 deliveries had jumped 53% but this was still at the low end of what was expected. According to Tesla, the low delivery output was due to a shortfall of high-density battery packs.

The company’s Model 3 had passed all regulatory inspections and will begin shipping on July 28.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.

Tags: , , , ,


About the Author

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.



Comments are closed.

Back to Top ↑

Get my latest stock alerts Real Time when you subscribe to the Newsletter.