Goldman Sachs named a new price target for Tesla (TSLA) stock. However, it is lower than the current value of the stock.
Tesla Inc (NASDAQ: TSLA) started the week on a bullish spree following the profitable Q2 figures released. The electric car manufacturer defied the economic downturn caused by COVID-19 pandemic and delivered 90,650 vehicles in the second quarter (18,650 above the projected 72,000 deliveries). On the market, Tesla (TSLA) stock on Monday rose by 13.48%, ending the day at $1371.58 per share. The stocks had a gain of 1.33% on Tuesday to close at $1,389.86. However, TSLA stock took a nosedive on Wednesday when it lost 1.73% to close the trading session at $1,365.
“We suggest that investors be tactical with the stock.”
The analyst has given a new projection for TSLA stock pegged at $1300, even below what it is currently. Although TSLA stock has shown very high volatility as seen in its 52-week record, the company seems to have the right investments and innovations to maintain investors’ confidence and thus keep it bullish in the coming months.
How TSLA Stock Will Fight against Bearish Trend
The milestone recorded by Tesla in the previous quarter has caused expectations from the auto-maker to increase. “If the company can manage 90K units during an extraordinarily challenging quarter, there is no reason that TSLA cannot be shipping 130K to 140K units a quarter by the end of the year in our opinion. That puts TSLA on a trajectory to ship 757K units in 2021,” JMP Securities analyst Joe Osha noted.
Tesla will probably concentrate its resources on its Shanghai Gigafactory as the company has proven to be pivotal to the company’s operations with plummeting sales in the U.S. Tesla has entered strategic partnerships to help improve the efficiency of the Gigafactory. Tesla has a partnership with battery maker LG Chem Ltd who already supplies batteries to the auto maker’s facilities in China amidst growing demands.
Tesla has also secured a partnership with mining giant Glencore who will supply the company with Cobalt for use in the Gigafactory. The bearish disposition of Goldman Sachs is not a universal position on the thriving auto maker’s stock. And while David Tamberrino projected the stock at $1,300 per share, Morgan Stanley’s Adam Jonas has revised his bull case price target to $2,070 for TSLA stock.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.