After Tesla showed that it doesn't deserve the trust of investors by doing a data dump on July 3 evening (see below tweet...), Goldman Sachs is out with a note Wednesday that needed to be written three months ago. As TheStreetreported, Goldman Sachs Analyst David Tamberrino reiterated a "sell" rating for Tesla, citing slowing sales growth of the company's electric cars currently on the market.
Tamberrino lowered his six-month price target to $180 from $190, which is 49% downside from Monday's close.
"We see potential for downside as the Model 3 launch curve undershoots the company's production targets," Tamberrino said. "This comes as demand for Tesla's established products (Model S and Model X) appears to be plateauing slightly below 100k annual run rate."
The bottom line is this: unless Tesla and Elon Musk has found the cure for the common cold -- where the cure is sprayed on people while sitting in their Tesla -- the company in no way deserves its valuation. Not only are its sales slowing, per Goldman's analysis, but there is a wave of strong electric cars coming to market over the next five years that could inhibit Tesla's gains. And from an outsider's perspective, one has to question Musk's leadership style -- ever listen to him on an earnings call? Give it a whirl, and then take a look at what the company did on Monday.
What's Hot On TheStreet
Volvo is no longer feeling gas engines: Ford's (F) - Get Report founder Henry Ford may be rolling over in his grave on this one. Volvo Cars said Wednesday that all of its cars will feature an electric engine from 2019, as it embraces of the new technology in the face of industry-wide adoption. The Swedish car maker will roll out a mix of all-electric, hybrid and mild hybrid cars from 2019 and will no longer offer vehicles that carry just a traditional internal combustion engine, TheStreetreports.
"This announcement marks the end of the solely combustion engine-powered car," said CEO Hakan Samuelsson. "Volvo Cars has stated that it plans to have sold a total of 1 million electrified cars by 2025. When we said it we meant it. This is how we are going to do it." Meanwhile, Nissan said Wednesday that its new all-electric Leaf will hit markets starting Sept. 6.
About Tesla's Model 3...
Microsoft on the clock: With speculation swirling of impending layoffs, TheStreettakes a look back at how Microsoft Corp. (MSFT) - Get Report CEO Satya Nadella has reshaped the tech giant. Since taking over in 2014 from the energetic Steve Ballmer, Nadella has completely reorganized Microsoft by driving better internal collaboration and via the purchase of LinkedIn. The stock market has rewarded Nadella accordingly: Microsoft shares hit an all-time high in January after better than expected earnings.
Summer paychecks for tech interns are no joke: You can't beat working as a summer intern for Apple Inc. (AAPL) - Get Report . Apple pays an average of over $7,000 per-month (plus paid overtime) for college interns, along with free housing near its San Francisco Bay-area headquarters, TheStreetreports.
Wait, we stand corrected. Being a college intern and logging into work for Alphabet Inc. (GOOGL) - Get Report and Facebook, Inc. (FB) - Get Report isn't too shabby, either: you can pull in the equivalent of $96,000 a year.
Costco has been crushed: Shares of the membership club retailer have plunged 13% to $158.82 inside of a month, as investors have grown worried about a world where Amazon.com, Inc. (AMZN) - Get Report owns organic food pioneer Whole Foods Market, Inc. (WFM) . Costco Wholesale Corp.'s (COST) - Get Report market cap has fallen a shade more than $9 billion, TheStreetpoints out. The more one looks at the grocery store landscape, the stock market has good reason to be concerned about Costco's future.
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(This article originally appeared on Real Money, our premium site for active traders. Click here to get great columns like this from Brian Sozzi, Jim Cramer and other writers even earlier in the trading day.)
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