Tesla (NASDAQ: TSLA) has received a new $1,300 price target from a bearish analyst at Goldman Sachs.
Goldman analyst David Tamberrino increased his price target for the electric automaker’s stock from $950 to $1,300. The stock holds a neutral rating from Goldman Sachs.
“We suggest that investors be tactical with the stock,” the Goldman analyst said, according to StreetInsider.
TSLA stock closed at a record high for the fifth consecutive trading day yesterday on Tuesday, June 7. The stock has surged 223% since the market hit rock bottom in March due to the COVID-19 pandemic. Tesla has enjoyed the fruits of its labor after stepping up amidst the virus’ rampage across the globe.
Despite closures at both its Fremont production facility in Northern California, and in China at its Giga Shanghai plant, Tesla managed to deliver 90,650 vehicles in Q2. Fremont was closed from March 23 to May 10, and Shanghai experience closures only in Q1. However, the company managed to exceed expectations and beat Wall Street estimates that had pegged Tesla to deliver between 72,000 and 83,000 cars.
Historically, Tamberrino has been extremely bearish on TSLA stock. In June 2019, Tamberrino indicated that he believed Tesla’s demand would begin to fall as a result of Model Y production.
“We believe a downward path for shares will resume as it becomes more clear that sustainable demand for the company’s current products are below expectations,” he wrote to a note to investors last Summer.
After releasing the note in June 2019, Goldman Sachs changed its price target from $200 to $158 per share.
However, the Goldman Sachs automotive analyst is now increasing his price target to $1,300. This price target is still around $100 less than what the company’s stock is trading at currently.
Interestingly enough, many relatively bearish TSLA analysts are continuing to increase price targets and bullish outlooks. However, these analysts are not recommending investors to buy the company’s stock.
On July 7, Morgan Stanley’s Adam Jonas revised his bull case price target to $2,070 for TSLA stock. However, Morgan Stanley and Jonas both reiterated that investors should stay away from TSLA stock because of several risks, which included skepticism regarding the company’s performance in China.
However, Tesla held 23 percent of China’s entire EV market in June, the Chinese Passenger Car Association reported. Sales of the company’s Model 3, which is currently the only vehicle manufactured at Tesla’s Giga Shanghai production facility, also rose 35 percent from May to June.
Tesla’s Q2 2020 Earnings Call will occur later this month. If the company reports a profit, it will be the fourth consecutive quarter where the company turned positive profitability, ending criticisms that Tesla has never made money on a yearly basis.
At the time of writing, TSLA was trading at $1,390.75.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.