Today, July 17th, Tesla’s shares dropped 14% after Goldman Sachs Group set a new price target under the current trading price.
Goldman Sachs analyst Patrick Archambault said there are three different growth plans for the electric automaker and set a 6-month price target of $84 a share, an increase from the previous target of $61. The automaker’s shares jumped 14.3% ($18.21) and closed at $109.05 on Nasdaq. So far this year the shares have almost quadrupled and Nasdaq announced at the beginning of this month that it will list Tesla’s shares on the Nasdaq 100 index.
If the stick will close at this level, it will be the steepest one-day drop since January 13th, 2012, when the drop was of almost 20%. Archambault predicts three scenarios for Tesla: selling 105,000 vehicles this year, reach earnings of $5.99 a share and operating margins of 14.6%, or selling 150,000 vehicles, 14.8% margins and earnings per share of $8.59 or selling 200,000 vehicles, 15.2% margins and $11.69 earnings per share.
“Tesla has developed an appealing and credible product with game-changing technology,” Jim Press, the former deputy CEO of Chrysler Group LLC, said in a telephone interview. “They need to prove their success is sustainable for the long term and that it is based on a solid financial foundation. If they do, they should be an appealing takeover target.”