Market Overview

Tesla's Back In Favor, But Goldman Sachs Is Still Selling

Share:
Tesla's Back In Favor, But Goldman Sachs Is Still Selling

Tesla Inc (NASDAQ: TSLA) has rebounded nearly 20 percent since reporting first-quarter production figures last week. One analyst won’t back the rally.

The Rating

Goldman Sachs analyst David Tamberrino maintained a Sell rating on Tesla and lowered the price target from $205 to $195.

The Thesis

Tamberrino attributes the recovery to Tesla’s reiterated production rate target of 5,000 Model 3s per week and its announced ability to achieve its goals without a 2018 debt or equity raise. By his assessment, neither strategy will hold.

The analyst expects Tesla to achieve a second-quarter sustainable production rate below Q1's 2,000-vehicle end rate. Amid February’s Fremont line improvements, 1,400 is more likely, Tamberrino said. 

“While this is an improvement from our previous forecast (adjusted accordingly), it is below revised consensus forecasts as well as below bullish investors’ expectations, in our view," the analyst said in a Tuesday note. 

Between Model 3 cash burn and growth targets, Tamberrino said he expects Tesla to raise capital at some point this year.

Model S and X demand could be stunted by rising competition and the loss of the electric vehicle tax credit in the back half of the year, he said. 

Price Action

At the time of publication, Tesla shares were trading up 4.53 percent at $302.77.

Related Links:

Bernstein: 'Uncertainties Loom Ahead' For Tesla Following Q1 Delivery Report

A Model 3 Miss, Capital Questions And Factory Shutdowns: What Wall Street Says About Tesla's Q1 Deliveries

Photo by John Cummings/Wikimedia. 

Latest Ratings for TSLA

DateFirmActionFromTo
Dec 2019MaintainsEqual-Weight
Dec 2019MaintainsSell
Dec 2019MaintainsOverweight

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: David Tamberrino Goldman SachsAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
INFYBank of AmericaUpgrades
BRMKPrescience PointInitiates Coverage On15.3
KALVNeedhamMaintains28.0
DENNSunTrust Robinson HumphreyInitiates Coverage On21.0
DINSunTrust Robinson HumphreyInitiates Coverage On111.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mid-Day Market Update: Crude Oil Up Over 2%; Tupperware Shares Plummet

What Effect Will Powell Have On Equities Markets?