Whether investors like electric vehicles or not, the rise of Elon Musk and Tesla Motors Inc. (NASDAQ: TSLA) has undeniably been one of the greatest growth and investment stories of this decade. Now Goldman Sachs has issued a Buy rating on Tesla Motors, calling for another 25% upside in Tesla shares.
The Goldman Sachs upgrade from Neutral came with a $250 price target, almost 25% higher than the $204.66 prior close. The driving force for the upgrade (no pun intended) may be the Model 3, which has yet even to enter production.
Note that the Tesla call seems to be a partial adjustment more tuned toward the formal rating rather than the target price. Furthermore, the target is less than the consensus analyst price target — and Goldman Sachs is not even predicting a new 52-week high here.
The report indicated that Goldman Sachs underestimated the number of reservations that the upcoming Model 3 sedan would get, as Tesla turns from a luxury car to a mass-market car maker. The firm also calls Tesla’s macro backdrop now stable.
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