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Goldman: Tesla shares will be cut in half on Model S production

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Tesla is a nice target for analysts who want to create a little controversy. It’s a highly traded stock with a big public profile…analysts know that if they make a sell recommendation on it they’ll get some attention.

The latest to run out the “sell Tesla” line is Goldman analyst David Tamberrino, who cut his six-month price target for Tesla to $180 from $190. Here’s the reasoning:

“We remain sell rated on shares of TSLA where we see potential for downside as the Model 3 launch curve undershoots the company’s production targets and as 2H17 margins likely disappoint,”

“This comes as demand for TSLA’s established products (Model S and Model X) appear to be plateauing slightly below a 100k annual run rate.”

Mr Tamberrino may well be right, and probably would be on another stock where normal rules apply. But, this is Tesla. Shorts have been totally crushed on it time and time again. Tesla has captured our imagination in a way that few companies have, and the public are buying as much of Musk’s story as they can get their hands on.

Tesla finished the day up 1.97%, that’s around 4% since they released the Model 3 productions numbers.

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