Goldman Sachs analyst, Patrick Archambault, single-handedly did a number to Tesla Motors stock price on Tuesday when he set a 6-month price target of $84 per TSLA share.
TSLA Stock Price Down on 7-16
Archambault left a "neutral" rating on Tesla, even though the automaker just made it on the NASDAQ 100.
As Arcahmbault sees it, there are one of 3 scenarios likely to play out for Tesla.
- Tesla sell 105,000 vehicles at a 14.6 percent operating margin and earnings of $5.99 per share
- Tesla sells 150,000 vehicles at a 14.8 percent operating margin and earnings of $ 8.59 per share
- Tesla sell 200,000 vehicles at a 15.2 percent operating margin and earnings of $11.69 per share
Archambault averaged the 3 scenarios together to arrive at his $84 target price for Tesla.
The target price, which is well below TSLA's current value, caused what was one of the largest single-day declines in TSLA history.
What we find hard to believe is how the words of one individual can influence so many.
Source: Automotive News