• 19 hours What New Economic Data Reveals About Gold's Trajectory
  • 2 days The Lucrative New Tech Hijacking Your Privacy
  • 2 days The Biggest Loser In The China-U.S. Tariff Tit-For-Tat
  • 3 days Trade War Takes Its Toll On Shipping
  • 5 days Is $90 Oil Possible? An Interview With Jay Park
  • 6 days Billions Of Dollars Are Flooding Into The Flying Taxi Space
  • 6 days Is This The Most Important Energy Project Of 2020?
  • 7 days Startups Are Dying To Give You A Better Death
  • 7 days U.S. Restaurants Are Struggling With Rising Labor Costs
  • 8 days The Banking Bonanza Is Just Getting Started
  • 8 days How The Trade War Ceasefire Will Impact The Energy Industry
  • 9 days Who Is The Most Dangerous Person On The Internet?
  • 9 days SoftBank Sees First Quarterly Loss In 14 Years
  • 11 days Prepare For An Oil Glut In 2020
  • 12 days Why A Strong Yuan Is A Promising Sign For The Trade War
  • 13 days What Would You Sacrifice For A Debt-Free Life?
  • 13 days Shareholders Urge Major Bank To Stop Funding Fossil Fuel Companies
  • 13 days Tariffs Are Causing A Slowdown In U.S. Manufacturing
  • 14 days The Great Silicon Valley Migration Has Begun
  • 14 days 3 Oil Stocks Paying Out Promising Dividends In 2020
How Fractional Trading Is Democratizing the Stock Markets

How Fractional Trading Is Democratizing the Stock Markets

Fractional trading allows investors to…

Gold Major Looks To Hike Dividends By 79%

Gold Major Looks To Hike Dividends By 79%

Newmont, the world’s top gold…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Investing
  3. Stocks

Goldman Reiterates 'Sell' Rating On Tesla Stock

Elon

Goldman Sachs has warned that intensifying competition on the EV market plus Tesla’s high debt load would make life for the company more difficult in the future, CNN reports, citing an update from the investment bank on Tesla, in which Goldman reiterated its “sell” rating on the company’s stock and set a US$210 price target. Yesterday, Tesla closed at US$288.95.

In a note to clients, the bank’s analysts wrote that they remained pessimistic about Tesla’s ability to ramp up production and turn in positive cash flow—something CEO Elon Musk promised will happen by the end of this year.

"We see the medium-to-longer term industry backdrop as challenging for Tesla's products; this follows from an increasing number of EV launches from both traditional OEMs and other start-up competitors — at a time when the company's product cadence hits a gap," Goldman analyst David Tamberrino wrote in the note to clients as quoted by CNBC. "We believe the company will see pressure to its lead in EVs as competition catches up."

Tesla has indeed had trouble meeting its own production ramp-up deadlines, which explains analysts’ skepticism regarding future production. Yet the latest reports from the Tesla camp suggest things might be looking up. Earlier this week, sources from the company told Electrek that Tesla had failed to ramp up its Model 3 weekly production to its own set target of 6,000 for August. However, the company’s overall Model 3 target for the quarter – 50,000 to 55,000 cars – is still within reach, with 34,700 Model 3s produced since the start of the third quarter.

At the release of the company’s second-quarter results, which featured higher revenues but another net loss, Musk said he expected Tesla to turn in a profit in both the current quarter and the next, adding that he saw no need to raise more funds, rejecting analyst forecasts that the carmaker needs an urgent cash injection to stay afloat.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment