The latest chapter in the continued tug of war over Tesla’s stock price has Goldman Sachs reinforcing its sell position on TSLA, setting a price target of $190 for the stock.
Goldman Sachs’ recent downgrade highlights the company’s bipolar positioning on Tesla, with the firm setting a price target of $250 and holding a solid buy position in May of last year.
The stock has since fallen out of favor with Goldman on concerns over Tesla’s ability to deliver Model 3 at planned production volumes after its upcoming July launch. Following the 2016 Q4 earnings call in February, Goldman Sachs slashed its rating of the stock from neutral to sell and set a price target of $185. Goldman Sachs analyst David Tamberrino cited concerns, at the time, over potential delays in bringing the pivotal Model 3 to market at the forecasted production rates. This flies in the face of everything Tesla has shared publicly including overt statements by CEO Elon Musk stating that the Model 3 was on track for the start of production in July. Recent leaks by a contractor working at Tesla’s Fremont factory revealed an ‘alien’ robot army ready to begin production on the mass market electric sedan.
In addition to the rating change, Mr Tamberrino also cut his 2017 EPS forecast to a loss of $2.53 per share from his prior position of $.30 per share.
The rating change by such a prestigious financial firm comes at a time when shorting TSLA has become a hot topic. Sellers constantly badger the company in the news while Musk publicly taunts them on Twitter having noted after a recent surge in the stock price that it was “Stormy weather in Shortville …”.
Stormy weather in Shortville …
— Elon Musk (@elonmusk) April 3, 2017
Shorting TSLA has been a painful pastime for those with skin in the game. Short sellers of Tesla have lost $3.7 billion this year alone.
With Tesla’s simultaneous disruption of the auto industry, the energy storage industry and the energy production industries, it is no wonder that it has evoked such skeptical responses from stalwart analysts, while at the same time inspiring a new generation to invest into the future even in the face of continued criticism.
The critics are not only the non-believers of Tesla. The company is also under direct attack from those standing to lose their businesses and their livelihoods as a result of Tesla’s success, namely the oil industry. To combat the rise of Tesla, oil-backed marketing campaigns have attempted to ‘debunk’ Tesla and ‘educate’ consumers through propaganda.
If nothing else, all signs point to continued interest in Tesla from the haters, the lover, the non-believers and the devout. I know where I stand.
Source: The Street
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(To be clear, I bought a single share. First ever stock purchase. I'm planning on holding it for years. I expect a 200x return by 2030... I'll probably buy another few shares over the next year.)
2) Goldman has likely taken on short-sellers as clients. The Goldman brand can swing sentiment and create profit opportunities for short term trading.
Congratulations, you're now a shareholder.
But you have been a Tesla fan for a while now. Why waited so long?
I paid my own way through college, graduating in 2014, got engaged, got married, went on a honeymoon, bought a house, plus I want to be able to buy a Model 3. So I didn't buy before now because all my money was going to other stuff.
The Tesla Show comparing TSLA's gross margin, revenue and market cap against GM's corresponding numbers made me realize how vastly undervalued TSLA is. That was an extra push to buy now, before other people realize how undervalued TSLA is. Like I said in another post, I see 200x returns on TSLA over the next decade not unlikely. I'll probably buy a few more shares later this year (but not so much that if I end up being wrong, it prevents me from buying a Model 3.)
Am doing despite the somewhat higher 1Q17 earnings loss per share, this is how TSLA has been doing this month...
i.e. <12% since Elon's Shortville tweet...
Boy, these Goldman guys must be really so much smarter than me... yet, am with @Taylor S Marks and @OttogiCurry ... without much money to invest... ;)
Note: I don't own any TSLA stock and I don't receive any compensation for writing this post other than from a guy by the (weird) name of Nole Ksum on an otherwise totally secret anonymous bank account in the Cayman Islands... :D :D
1) EPS is a meaningless metric for a company investing +-100% of profits into vast growth markets (see Amazon).
2) Goldman has likely taken on short-sellers as clients. The Goldman brand can swing sentiment and create profit opportunities for short term trading.
Thought so, thanks for input, @BrianA !
I bought at $315 last week. I have no regrets. If it drops down to $190, or anywhere near that (and I seriously doubt it will), I'll happily buy some more.
(To be clear, I bought a single share. First ever stock purchase. I'm planning on holding it for years. I expect a 200x return by 2030... I'll probably buy another few shares over the next year.)
Congratulations, you're now a shareholder.
But you have been a Tesla fan for a while now. Why waited so long?
1) EPS is a meaningless metric for a company investing +-100% of profits into vast growth markets (see Amazon).
2) Goldman has likely taken on short-sellers as clients. The Goldman brand can swing sentiment and create profit opportunities for short term trading.
Though I have very limited financial knowledge, your comment seems to make a lot of sense. Easy to lead a cult of skeptics toward short positions, and then change course if necassary. Not that bulls aren't also cultish in this case, but you would think even GS would be weary of shorting a company run by Musk. Solar city seems to be their biggest risk, and though it currently is a risk it's possible to have a huge upside niece everyone wants a solar roof. Would be truly amazing if they can pull off the roof!!!
