Goldman Sachs Provides a Bearish Picture on Tesla Inc (TSLA) as All Eyes on Model 3 Production


In response to a request for further details on the release date of Tesla Inc (NASDAQ:TSLA) first Model 3 sedan, CEO Elon Musk tweeted that the company will unveil news on Sunday. Tesla is also expected to announce its second-quarter deliveries shortly after the quarter ends.

Ahead of the upcoming catalysts, Goldman Sachs analyst David Tamberrino reiterates a Sell rating on Tesla Motors shares, with a price target of $190, which represents a potential downside of nearly 50% from where the stock is currently trading.

Tamberrino wrote, “We believe the company should comfortably achieve its 1H17 delivery guidance (47k to 50k). Our 2Q17 forecast of 23.5k would put TSLA at 48.5k for 1H17, although we note potential upside does exist. That said, we believe the vehicle delivery amount is likely a non-event as the calendar change to July places all attention on first production of the Model 3.”

“On that front, we continue to expect a slower cadence than implied by the company and for 2H17 margins and EBITDA to underperform relative to Street expectations While shares have run significantly higher (up 47% vs. the S&P up 2%) since our 02/27 downgrade on positive news flow (incremental product announcements, investment by Tencent, potential China expansion), we still see downside to TSLA’s share price as we progress into the Model 3 launch,” the analyst added. (Watch Tamberrino’s track record here.)

Out of the 19 analysts polled by TipRanks (in the past 3 months), 6 rate Tesla stock a Buy, 7 rate the stock a Hold and 6 recommend a Sell. With a downside potential of 21%, the stock’s consensus target price stands at $285.27.

 

  • joeinslw

    Goldman Sachs, did you mean Goldman Sucks? What do they know about EV”s (which stands for Electric Vehicles in case you didn’t know) I am sick and tired of reading these predictions that aren’t true, or way off base. Not to long ago when tsla was 160.00 per share, there was someone who said Tesla Motors a very bad company & a very bad investment, and put a sell rating on Tesla, and I said that was a “Cheap Shot” I still feel that way with people who make snap predictions without knowing all the real facts, and they can’t know all the facts.
    It’s well known that the CEO Mr. Elon Musk keeps many of his decisions including information about Tesla close, (as they say close to the vest) and yet people still make predictions that turn out to be completely wrong, and continue to be wrong for the last five years. These wrong predictions are what makes Tesla Motors a risky investment, I have found it to be just the opposite because of these wrong predictions.
    I have been seeing, and reading about these predictions for the last 5-6 years, nothing has changed they continue to make wrong predictions which is doing a DIS-service to many investors, or who would be investors, but because of these erroneous comments, they shy away, or worse become short sellers because they are convinced that Tesla Motors will fail, go out of business, and screw all their long & loyal investors.
    Short sellers and others who don’t know what Americans want, continue to bash Tesla Motors they fail to see that this CEO Mr. Musk will not allow that to happen.
    Several years ago when Tesla was just getting started they did get into some serious financial trouble, but the saving grace was Mr. Musk himself, he put his hand into his own pocket, and saved the company, how many company CEO’s do you know that would use their own personal cash to do that?
    The fact that GM crushed all of the leased EV1’s they made in 1999 because they supported fossil fueled cars instead is never published, never talked about in any circles, auto magazines, or publications. Nobody seems to care about what Americans or the World wants, and what they want are Electric Cars that make sense, use less energy, don’t have the maintenance schedule that fossil fueled cars require, in one word that made the United States a great country, is freedom, but also….choice…

    • Mark Potochnik

      We used to have electric trolley buses and streetcars in Milwaukee. And GM worked to get them off the streets…