Tesla (TSLA) got a second slap from an investment bank in as many days Wednesday after Goldman Sachs cut its price target for the company's stock, citing anticipated weaker demand for its higher-priced electric car models that it feels will negatively impact earnings.
In a note to clients, Goldman analyst David Tamberrino said he is maintaining his sell rating on the stock and reducing his 12-month price target to $210. Shares of Tesla were at $284.50 in trading Wednesday on the Nasdaq Stock Exchange.
"We maintain our sell rating, and now expect 1Q19 deliveries/earnings to disappoint," Tamberrino said, noting that after looking through the company's delivery numbers he and his team are lowering their first-quarter Model S and Model X delivery forecasts - to an aggregate 17,300 vehicles from 20,700 vehicles.
However, "... we are maintaining our current Model 3 forecast for 57,500 deliveries in 1Q19 - despite estimating only approximately 21,000 through February - as we believe the company has the potential to deliver at least 10,000 more Model 3s in each region."
Tamberinno is currently anticipating a first-quarter loss of 87 cents a share, compared with FactSet consensus estimates for a profit of 37 cents a share.
Goldman's price-target cut comes on the heels of a similar negative report from Morgan Stanley, which told its clients they see the electric car and battery company "hitting an air pocket in demand that is coming earlier than we expected."
And both stock-price target downgrades come on the heels of Tesla announcing significant changes to how it sells its cars, most notably the shuttering of its retail stores, which it has walked back somewhat.
Update on Tesla Stores and Pricinghttps://t.co/Qx4MXamYd9— Tesla (@Tesla) March 11, 2019