It wasn't that long ago that the Tesla Stock hit an all-time high of $280.98. Today, though, TSLA is cratering thanks to a warning about the stock from the Goldman Sachs Group Inc. Goldman Analyst David Tamberrino said that he's unsure that Tesla will be able to bring the Model 3 to market on time. As of this writing, TSLA is down to around $245. Tamberrino says that he thinks it will be worth closer to $185-190 six months from now.
Tamberrino wrote that, "Ultimately we see a delayed launch ," and that Tesla's "operational execution is still unproven." This despite Tesla's clear statement last week that the Model 3 will start production on time this summer. Tesla said in its quarterly earnings statement that, "Model 3 on track for initial production in July, volume production by September." In other words, we have a disagreement here because both can't be right. Of course, given Tesla's track record at releasing its electric vehicles on time, we'll have to give the benefit of the doubt to Tamberrino. Of course, since Tesla has a history of launching new vehicles late, maybe the stock market already knew about this and has priced the stock accordingly.
Tesla's stock is down again today; since last Wednesday Elon Musk's net worth has fallen $1.1 billion. #Mondays
— Noah Kirsch (@Noah_Kirsch) February 27, 2017
Tamberrino's other point (other than the lateness) is that Tesla will probably have to raise about $1.7 billion in shares in the third quarter in order to keep moving forward. He wrote that, "While we believe Tesla currently has a lead relative to OEM (original-equipment market) peers with respect to vehicle technology adoption, electric vehicle architecture, and (potentially) battery scale, our concerns are more near-term oriented with respect to operational execution on the Model 3 launch, an unproven solar business, and cash needs."