Tesla Stock Price Projections Lowered Due To Production, Sales Challenges: Goldman Sachs
Portfolio Pulse from Piero Cingari
Goldman Sachs has lowered its stock price projections and delivery forecasts for Tesla, Inc. (NASDAQ:TSLA) due to production challenges and weakening demand for electric vehicles. The firm reduced its 12-month price target for Tesla from $220 to $190, citing slower Model 3 ramp-up, operational disruptions in Berlin, and a general softening in EV demand. Despite these challenges, Goldman Sachs sees growth opportunities for Tesla, including new models and a low-cost vehicle. Tesla's shares have dropped 34% year to date, significantly impacting its market valuation. The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY), with Tesla as its largest holding, has also seen its price stall.
March 18, 2024 | 1:09 pm
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NEGATIVE IMPACT
Goldman Sachs lowered Tesla's stock price target from $220 to $190 due to production and demand challenges, but sees potential growth opportunities.
The reduction in Tesla's stock price target by Goldman Sachs is a direct result of identified production difficulties and a weakening demand for EVs. The significant drop in Tesla's shares YTD and the adjustment of delivery forecasts further support a negative short-term impact. However, the mention of growth opportunities and the oversold technical conditions suggest a potential for rebound, moderating the negative outlook.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEGATIVE IMPACT
The Consumer Discretionary Select Sector SPDR Fund, with Tesla as its largest holding, has seen its price stall amid Tesla's market challenges.
The Consumer Discretionary Select Sector SPDR Fund (XLY) is directly impacted by Tesla's performance due to its significant holding in the company. The stall in XLY's price is a consequence of Tesla's declining market valuation and the overall negative sentiment surrounding Tesla's current challenges. However, the impact is less direct than on Tesla's stock itself, hence the lower relevance and importance scores.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75