Goldman Sachs downgrades Tesla - and the stock is falling
Goldman Sachs downgrades Tesla to "sell" from a "neutral" rating, and the stock is falling. Tesla is down 4.72% at $244.86 a share on Monday morning.
The bank also lowered their six month price target to $185 from $190 a share. According to the Goldman Sachs equity research team in a note published on Monday, "Our concerns are more near-term oriented with respect to operational execution on the Model 3 launch, an unproven solar business, and cash needs. Ultimately we see a delayed launch (pushing volume growth out and to the right) and FCF burn rate (necessitating a capital raise before 4Q17) to weigh on TSLA's shares."
Tesla's $35,000 Model 3 mass-market sedan is scheduled to launch in late 2017.
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