Despite the coronavirus pandemic, which has seen factories shutter and sales to plummet, unlike many of its automaker peers, Tesla (TSLA) doesn’t have a ton to complain about.
As of the open Wednesday, April 15, Tesla was up 3.70% to 737.70 despite
Partially driving the move higher was a series of recent upgrades from Goldman Sachs GS and Credit Suisse CS.
Goldman resumed coverage of Tesla with a buy rating and a $864 price target.
“We believe that the company is well positioned to benefit from long-term secular growth in EVs, and we expect the company’s early-mover advantage and technology cadence … will allow Tesla to maintain good market share and gross margins,” Goldman analysts wrote in a note.
It’s worth noting that Tesla certainly isn’t immune to the impact of the coronavirus shutdown. The automaker was forced to shutter its Fremont plan in March and has reportedly sought rent reductions from some of its landlords. “The rapid world pandemic that is now affecting our country has led Tesla to make strategic decisions to ensure the company’s long term success and growth,” Tesla wrote in a letter to landlords obtained by the Wall Street Journal.
Tesla also cut some salaries by as much as 30% and furloughed some workers as production in the U.S. winds down. “Everyone else” will see a pay cut of 10%, according to an internal memo.
Catch Cramer’s take on Tesla in the video above.
Catch up on the Latest Videos on TheStreet!