Tesla Motors Inc (NASDAQ:TSLA) has had an unusually rough week in the theater of public opinion. As The Street reported today, Tesla Motors Inc (NASDAQ:TSLA) is taking another big hit on the markets today after they came out on the losing end of yet another tussle with analysts. It’s a decided and unwelcome change of pace for the electric automaker, whose stock has been buoyed for months by glowing positivity concerning its operations and potential.
Bloomberg reported that Goldman Sachs Group Inc (NYSE:GS) recently toured their Fremont facility and met with management, and while they came away firm in the belief that Tesla Motors Inc (NASDAQ:TSLA) will meet their 2014 production goals, they have reservations about their long-term plans.
In particular, they question Tesla Motors Inc (NASDAQ:TSLA)’s ability to scale their operations up to the extent they have planned over the next few years, which includes the development of the Gigafactory. Goldman Sachs Group Inc (NYSE:GS) believes that Tesla Motors Inc (NASDAQ:TSLA) will need at least $6 billion in capital to fund everything, and that is on the low-end of their projections.
Goldman Sachs Group Inc (NYSE:GS) maintained a neutral rating on Tesla Motors Inc (NASDAQ:TSLA) with just a $210 price target, significantly below the stock’s current (though now-shrinking) value. They believe Tesla Motors Inc (NASDAQ:TSLA)’s valuation has absolute perfection baked into it, which is not reasonable.
That latest call follows earlier skepticism this week from multiple other sources, including Morgan Stanley (NYSE:MS), Morningstar, Inc. (NASDAQ:MORN), and Advanced Automotive Batteries. Among other things, there were concerns over Tesla Motors Inc (NASDAQ:TSLA)’s Chinese operations and ability to meet demand there, the viability of the EV market as a whole, the price point of the Model 3, and the impact autonomous vehicles may have on Tesla Motors Inc (NASDAQ:TSLA).
On the other hand, Tesla Motors Inc (NASDAQ:TSLA) did win an important ruling in Massachusetts this week, which could indicate their business model of direct-to-consumer sales will be allowed in other states as well; a necessary condition for keeping their vehicles costs to where they want them.
Tesla Motors Inc (NASDAQ:TSLA) is down 1.83% today in afternoon trading, and 7.54% for the week, shedding $21.05 from its stock price and over $2.5 billion in market cap.
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