Pull the Plug on Tesla’s Value?
The value of California-based electric automaker, Tesla Motors’ earning potential and share price are analyzed after a triple-fold increase from earlier this year. Roben Farzad of Bloomberg Businessweek takes a closer look at attempts by Goldman Sachs to dampen optimism surrounding Tesla’s increasing profit margins. Do the numbers really show Tesla has power to remain consistent with this kind of growth?
The very next day, Andrea James of Minneapolis-based Dougherty & Co. stepped up to the mic to counter the Wall Street giant. She wrote: “We ultimately believe that Tesla is a $300 stock at the factory’s maximum capacity, which we hair-cut to $200 for the execution risk.” (She previously had a $90 target). Tesla, she noted “makes the best product in an industry that does $1.5 trillion in sales. Just 2 percent market share on [its next-generation car] returns a $200 stock.
