Goldman Sachs cuts Tesla price target: ‘Downward path for shares will resume’
Goldman Sachs slashed its price target on Tesla on Thursday and said it was expecting shares to continue to decline over concerns about demand.
“Sustainable demand [is] the key question as shares [are] likely continue to de-rate,” the bank said in a note, slashing Tesla’s price target to $158 from $200.
“We believe that is the largest question for investors to underwrite at this point — what are sustainable demand levels for the Model S, Model X, and Model 3 — and how does that change with the introduction of Model Y production,” Goldman Sachs analyst David Tamberrino said. “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.”
Tesla shares are down 0.81% in premarket trading. The stock is down 30% this year as the company continues to be mired in myriad controversies. Analysts and investors also continue to mull whether the company will need to raise more capital.