TSLA -15 to 241 after downgrade by Goldman -
briefing -
Tesla: Goldman steps to the sidelines citing difficult pricing envm't for new vehicles (253.19 -3.41) :
Analyst Mark Delaney added, "We're downgrading Tesla shares to Neutral from Buy, as we believe the stock now better reflects our positive long-term view of the company's growth potential and competitive positioning. While the primary reason for the change is that we think the market is now giving the stock more credit for its longer-term opportunities post the recent rally, we're also cognizant of the difficult pricing environment for new vehicles that we think will continue to weigh on Tesla's automotive non-GAAP gross margin this year. We attribute the recent move higher in shares (which exceeded our expectation) to a combination of factors including relatively solid sales in April and May, less price declines/discounting in 2Q than investors (and we) had expected, incremental IRA credits, several companies now planning to use Tesla's charging network, and investor focus on companies that benefit from AI. While we raise our estimates reflecting a more moderate rate of price declines going forward (with our new estimates about in line with consensus for 2Q23 and 2024/2025 but below in 2H23), other contributors to the recent move in the stock such as opening parts of the charging network and the impact of AI on Tesla's full-self-driving product are likely to have a more limited near-term contribution to EPS."
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