Goldman Sachs Downgrades Tesla: Concerns Over SolarCity & Model 3GS) downgraded shares of Tesla Motors Inc (TSLA) from "buy" to "neutral" over growing concerns regarding a potential delay to the Model 3 launch. The investment bank also noted complications from its acquisition of SolarCity Corp (SCTY).
Goldman lowered its 6-month price target to $185.
Wall Street doesn't know what to thinkSentiment seems to be increasingly volatile for Tesla.
Morgan Stanley (MS) recently issued an "equal-weight" rating with a $245 price target, representing around 25% upside.
It's important to note, however, that most Wall Street analysts continue to be very bullish on the long-term potential of Tesla, especially with its new mass-market Model 3 vehicle.
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The mixed sentiment seems to stem from issues regarding short-term capital levels and quarterly vehicle deliveries. For example, some analysts are positive on Tesla's ability to execute on its second-half delivery guidance of 50,000 units. Many others are still concerned with ongoing discounting measures and cash flow headwinds.
How should you view Tesla?Our writers at InvestorGuide have put together a few opinions on the situation:
Avoid These 2 Automakers at All Costs
Tesla's stock has enjoyed great growth due to its apparent potential. Going forward, Tesla may struggle to continue beating its competition.
Elon Musk's Tweets Can't Save Tesla Anymore
Tesla has never traded on the basis of its fundamentals. Now, it looks like Elon Musk is scamming Tesla investors by agreeing to acquire SolarCity.
SolarCity: Great Trading Opportunities Ahead
Given that Tesla plans to acquire SolarCity for roughly $26, the market clearly doesn’t expect the deal to go through. SolarCity is currently almost 30% under its likely buyout price, which makes it a good speculative play.
Published on Oct 7, 2016By Ryan Vanzo