By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC ***
Tesla Inc. has hit the “as good as it gets” sales mark, Wall Street claims. And according to Goldman Sachs, the company shouldn’t see a major increase in demand in the coming years. But perhaps, analysts aren’t as accurate in their predictions.
Analysts claimed that the electric car company’s stock would sell at $158 previously, but by June 20th, the price was 30% higher.
Experts believe Tesla Chief Executive Elon Musk’s claims regarding his hopes for a record sale and production quarter may have pushed the stock price up. However, the gains shouldn’t be greater than what the company’s seen so far, Goldman Sachs analysts report.
For the second quarter, Sach’s analyst David Tamberrino and his team explain, Tesla shouldn’t see much of a difference, and Wall Street shouldn’t be surprised if the company narrowly misses the consensus. Because there isn’t a major demand for the electric vehicles nationwide, experts believe sales won’t change much in the near future, especially because federal tax credits will drop after July 1st. Still, Musk and his team soldier on, going as far as promising a Tesla pickup truck by summer.
But promises don’t impress analysts, who believe that Tesla’s supposed growth isn’t doable.
“We believe that is the largest question for investors to underwrite at this point — what are sustainable demand levels for the Model S, Model X, and Model 3 — and how does that change with the introduction of Model Y production,” Sachs’ analysts said.
Thankfully, not all is lost for Tesla and its supporters. After all, analysts suggest that the company will keep its 20% market share through 2025, a prediction that dismisses a previous 30% share estimate from 2018.
With a 34% loss overall, Tesla shares might not be as interesting to some. However, not all is lost. According to MarketShare, the firm registered 17% and 14% gains for the S&P and the Dow Jones Industrial Average.
- 1 Jul, 2019
- Josh Smith