Tesla is sinking on Wednesday after Goldman Sachs downgraded the stock based on what it thinks is plateauing demand.
ADVERTISEMENT
Tesla sinks after getting downgraded by Goldman Sachs (TSLA)
Goldman Sachs' downgrade was based on what it thinks is plateauing demand.
ADVERTISEMENT
Recommended articles
The drop of 5%, or $17.84 a share, is the biggest drop by dollar amount this year. Shares had been on a tear, up 55.59% in 2017, leading up to the release of Tesla's Model 3.
Goldman has been bearish on Tesla in the past. The firm had a price target of $190, before lowering its target to $180 on Wednesday. The new target is 46% lower than Tesla's current price of $334.64.
Deliveries are one of the most important metrics for Tesla, and the company fell short of Wall Street estimates in the second quarter. It is set to start delivering its Model 3 sedan, targeted at mass-market consumers, later this month. The company hopes its new Gigafactory will help with the production of the new vehicles and plans to be producing 20,000 a month by the end of the year.
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
Congo is spending 22% of its scarce revenue on security - Minister
Another African country is set to get a Russian embassy
Medic West Africa 2024: A resounding success in fostering collaboration and innovation for a brighter healthcare future
10 African countries with the most troubling external debt in 2024
10 African countries with the least soft power influence over the world
Kenyan government rejects calls to ban TikTok, recommends tighter control over
Congo accuses Apple of conflict minerals in its supply chain
Top 10 African countries with the highest fuel prices in April 2024
