Tesla stock slips
This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%. At the same time, S&P 500 futures, NASDAQ futures, and the Dow futures were up by 1.0%, 1.5%, and 0.9%, respectively.
Goldman Sachs slashes target on Tesla
According to a CNBC report, Goldman Sachs analyst David Tamberrino cut his price target on Tesla to $158, down 21% as compared to his earlier price target of $200 per share. The analyst’s new target price reflected a downside of nearly 30.2% from Tesla’s closing price yesterday of $226.43.
In a note, Tamberrino raised questions about the sustainability of Tesla car demand as the company starts producing its mid-sized SUV Model Y soon. He said, “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.”
YTD stock performance
As of yesterday’s closing, Tesla stock has lost 32.0% year-to-date against 20.4% gains seen in the NASDAQ Composite Index. During the same period, GM and Ford have risen 10.0% and 31.2%, respectively.
On Wednesday, the Federal Reserve’s dovish statement helped the market rise after a sharp rally seen on Tuesday on trade optimism. The Fed’s statement is helping other stocks including GM and Ford to rise today.