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.

In the pre-market session, the stocks of other carmakers such as General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) were up by 1.1%, 1.0%, and 2.5%, 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.

Latest articles

President Trump eased the Huawei ban on June 28. Since then, investors have been closely monitoring how US officials implement the policy change.

Norfolk Southern will report its second-quarter earnings results on Wednesday. The company is expected to report an adjusted EPS of $2.79.

Dish Network’s (DISH) wireless business is currently in the making, as cord cutting has hit US satellite pay-TV providers harder than their cable counterparts.

Halliburton (HAL) reported its second-quarter earnings on Monday before the markets opened. The company's earnings rose sequentially.

22 Jul

Economic Data and Earnings Before the Fed's Meeting

WRITTEN BY Mohit Oberoi, CFA

Economic data and earnings will keep investors busy this week. More than a quarter of the S&P 500 companies are scheduled to release their earnings.

22 Jul

Will Chevron Outperform ExxonMobil in Q2?

WRITTEN BY Maitali Ramkumar

Chevron (CVX) and ExxonMobil (XOM) are scheduled to post their second-quarter earnings results on August 2.