Tesla (NASDAQ: TSLA) receives a price increase from Goldman Sachs ahead of its Q2 delivery report. The firm downgraded its rating to Hold but raised its price target by 34%.
Analyst Mark Delaney of US investment bank Goldman Sachs updated his outlook for Tesla shares ahead of a delivery report due this weekend. Even though he downgraded his rating from Buy to Hold, he raised his price target from $185 to $248, representing a 34% increase. The analyst took into account the new share price, and the recent strong growth, as a result of almost three weeks of rally.
He justified his downgrade rating by saying that the stock, at current price levels, now better reflects the investment firm’s positive long-term view of the company's growth. The analyst wrote that while the market is now more confident in the stock for long-term opportunities after the recent rally, he pointed to the challenging new car environment that persists and is likely to put pressure on Tesla's non-GAAP gross margins this year.
Last year, as Tesla's share price tumbled, some analysts announced the end of the company's success story. However, they were wrong. Since the beginning of the year, TSLA is up about 127% and is trading at $245 per share at the time of writing. At the moment, investors have taken a wait-and-see approach and will begin to act after the announcement of deliveries and financial results for Q2 2023.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.