Goldman Sachs: Tesla Model 3 Will Drive 5X Growth In Annual Deliveries By 2020
With Tesla Motors Inc (NASDAQ: TSLA) set to unveil its much anticipated Model 3, investors will be able to see various metrics, including the design and mileage specs, for this first time, which could prove to be a potential catalyst for a stock that has appreciated 55 percent since its February 9 lows.
Buy Ahead of Catalysts
Goldman Sachs’ Katherine Fogertey maintained a Buy rating on Tesla Motors Inc, while mentioning that Model 3 could be “the main driver of nearly 5X growth in annual deliveries by 2020.”
“This is a key model for the company as the lower price point has the potential to dramatically increase the total addressable market and drive a bullish outlook for sales growth,” Fogertey stated.
The company is also scheduled to report its 1Q deliveries in early April, a metric that Tesla Motors has only begun to report recently and one that had led to +/- 5 percent share price movement over the past two quarters.
Fogertey expects Tesla Motors to meet its 1Q delivery guidance of 16,000 deliveries, as compared to 10,000 a year ago. However, the analyst believes that this figure could act as a negative catalyst for the stock.
Latest Ratings for TSLA
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Underperform|
|Jun 2016||Argus Research||Downgrades||Buy||Hold|
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