This morning…
Goldman Sachs sees 22 percent upside in Tesla Motors Inc (NASDAQ: TSLA) over the next six months.
Goldman Sachs upgraded shares to Buy, with a $250 price target, after the firm downgraded U.S. equities to Neutral on Tuesday afternoon. This is enough to send shares of Tesla more than 3 percent higher in early Wednesday trade.
Analyst Patrick Archambault writes that a 22 percent climb in share price is feasible following the recent selloff because “we do not believe Tesla shares are fully capturing the company’s disruptive potential.”
Related Link: How Has Elon Musk Been So Successful So Quickly?
The report does note that there are few short-term catalysts other than the ramp of the Model X. Archambault said, “expectations are low in our view with many on the Sell/Buy sides expecting a cut to Tesla’s 80-90k delivery target.”
Goldman Sachs expects Telsa to raise about $1 billion of capital. This potential raise was taken into account for the $250 price target.
After Hours…
If you enjoy the content at iBankCoin, please follow us on TwitterTesla Motors Inc. (TSLA) has filed to sell about $2 billion of common stock to grease its way to the Model 3, the $35,000 mass-market electric car it hopes to sell by late next year. The Silicon Valley electric-car maker said it will offer about $1.4 billion of shares, with the remaining shares to be sold by Chief Executive Elon Musk to cover tax obligations associated with his exercising of more than 5.5 million stock options, the company said in a press release. Net proceeds from the offering will “accelerate the ramp of Model 3,” the company said. Musk’s stock options, granted in 2009, are due to expire in December and, since Tesla shares have risen “considerably” in the intervening years, Musk will owe a “significant amount of taxes.” Musk will also be donating 1.2 million shares to charity. The company didn’t specify the charity recipients. Tesla shares fell 3.6% late Wednesday after ending the regular trading day up 3.2%. Morgan Stanley and Goldman Sachs are the offer’s joint bookrunners.
What to do here OA? Bail?
On what? No frame of reference here…
Sorry, sell TSLA here at the secondary or wait it out until dust settles. Long here at 221. thx
Max upside in the near term is $220…I think it slowly grinds lower into the summer. Late July or early Aug, I bet you can grab it near $190.
But like I said, you can probably hold out for a better exit point in the next 3 weeks.
Thanks for your opinion, much appreciated!
I could easily stay with this position, sell 190 puts, then take more shares at $190 a month or two from now.
why are you buying a company selling snake oil?
Accelerated production is a bad thing? More than 400K units were pre-ordered. Perhaps now more folks will sign up knowing they may not have to wait until 2018 / 2019 to take delivery.
If you do some quick math I believe $2B is the equivalent of 9.5 million shares at today’s closing price of $211. They go from 134 million shares outstanding to 143.5. If they sell all 400K units that calculates to $18B in Model 3 sales alone. They just locked up the equivalent of ten times 2015 revenues
Is this company worth more than 29B?
https://www.youtube.com/watch?v=Ucz9eV7Eh0s
Those aren’t pre-orders, they are call options with no time premiums.
They are 100% refundable and many bought them hoping to resell either the actual car or the production spot to someone who doesn’t want to wait. I know of at least two people that did this because their $1000 wasn’t earning that much anyway.
Also, Tesla is no Apple: Tesla consistently misses production targets, so “accelerated production” optimistically means on-time production.
As I’ve stated before, Tesla doesn’t even make enough cash to keep their lights on. It’s one thing to invest in a low/negative net income company like Amazon becuase they made $11.9B in Operating cashflow that they then spent on cap ex and investments. Tesla, OTOH, had negative Operating cashflow. Considering that they are a manufacturing comapny with high infrastructure cap ex, it is even more troubling.
There are much cheaper lotto tickets out there, even if Musk is a genius. Now if you want to *trade* this stock, then the company’s value isn’t as relevant as what your charts are tellign you investor sentiment says.
Also, +1 on the pic OA
You got that from Vickers, ‘Work in Essex County,’ page 98, right? Yeah, I read that too.
Don’t get how these crooks get away with this. The wall street police are such pussies
Yet another reason why I generally take the opposite side of all GS news and analysis.
They’re the AJ Pierzynski (ATL Braves), and Corey Perry (ANA Ducks) of Wall Street- love them if they’re on your team, dislike them if they’re not.
Give them credit, they utilize the media to maximize their outcomes well.
TSLA is dog shit
Somewhere in between those last two comments lies Donald Trump …
Give them credit, they utilize the media to maximize their outcomes well.
and
TSLA is dog shit.
CHD Jeff
Sniffed out a gap in the Chode. Super impressed. Nice work
DUST up 32% ??
Anybody watching copper? Feels like misdirection…
bot back into NFLX weekly calls 91.5s – this has the potential to explode here – or dive, but like the price action over the past week.
Hmm, I know I don’t like this under 89 though….
I’m long a vertical put spread out some months, becuase the fundamentals don’t add up for me. I was also long near-term puts, but ditched those because I didn’t like the risk factor at this level.
As you said, could go either way.
Good place to cover any remaining shorts.
I guess all the oversold, extreme readings, support levels didn’t matter. This market is done
Timestamp this beauty….
Maybe 10th times the charm for you guys trying this
This is my first time playing against the likes of you…
its not working, troll harder
For the last couple weeks, trolls been winning. Need a V reversal to crush them/us
I have no issue with trolls/you/anyone I just like to play the game….
Agree. Just prove them wrong and shut them up.
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