Goldman Sachs Still Says to Sell Tesla Inc (TSLA)

Tesla Inc (NASDAQ:TSLA) is celebrating the fact that the company has reached its latest Model 3 production goal, but a number of firms are less than impressed. We can include Goldman Sachs in that camp, as the investment giant has reiterated its sell rating.

CNBC has the details on the lack of enthusiasm surrounding Tesla.

Several Wall Street firms are playing down Tesla’s Model 3 production milestone, remaining skeptical over the carmaker’s finances and demand trends.

Tesla said Monday it reached its one-week production goal of 5,000 Model 3 cars for the last week of the June quarter. But the company fell short on its second-quarter deliveries by posting 40,740 vehicles delivered versus the Wall Street consensus expectation of approximately 51,000.

Goldman Sachs analyst David Tamberrino is standing firmly by his sell rating and $195 price target for Tesla. He explained the reasoning for his bearish sentiment in spite of the recent positive news in a note to clients.

“Model 3 deliveries did miss our bearish estimates and we see the incremental color on Model 3 net reservations (where the company showed its first declining data point) as incrementally negative,” he wrote.

Tesla Inc shares fell $2.10 (-0.63%) in premarket trading Tuesday. Year-to-date, TSLA has gained 6.92%, versus a 3.14% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of B (Buy), and is ranked #3 of 24 stocks in the Auto & Vehicle Manufacturers category.