Tesla Inc. (NASDAQ:TSLA) has been doing all it can do, to ensure that it can achieve its delivery target in the coming year and manage to start the final production of the Model 3 on time. If it can streamline the production processes, it may become easy for the automaker company to achieve its goal of manufacturing 500,000 cars a year. But Goldman Sachs is not buying any of these things from Tesla.
Goldman Sachs analyst David Tamberrino is pessimistic about company’s performance despite all the current actions that Tesla has taken recently. He remains negative on the company’s performance in a new note to clients in the automobiles preview. The firm has maintained a Sell rating on TSLA stock with a price target of $187.
The energy storage company’s price target is below the mark where Tesla’s shares are currently trading. Shares are trading at $302, down by 3.52, or 1.15%, from the start of trading. Recently, the shares hit a 52-week high when they were trading at $312 per share. The lowest point for Tesla’s shares in the past one year has been $181 back in November 2016.
David also expects that the company will post EBITDA below the consensus expectations for the growth in the SG&A expenses the company bears. The increase in SG&A expenses will outdo TSLA’s effort of delivering a record number of cars in the first quarter, followed by a deferred revenue recognition after the software update.
He also cautioned that the recent cancellation of the EV incentive of Hong Kong could be a problem for the carmaker as people will pull out their orders due to the cancellation. This can also have an impact on its sales in the future quarters.