Vroom Vroom: Tesla shares jump after Goldman Sachs upgrade
Tesla shares jumped close to 4 per cent on Wednesday after Goldman Sachs upgraded the carmaker’s stock from "neutral" to “buy”.
Patrick Archambault, Goldman Sachs’ auto analyst, said he sees a 22 per cent upside to Tesla's $250 share price target.
Tesla shares traded at $212.73 at the time of reporting, up almost 3.94 per cent.
Read more: Tesla beats expectations and primes for Model 3 launch
Goldman Sachs’ vote of confidence was particularly good news for Tesla as its Model X SUV rollout didn’t go as planned.
In a note to clients, Archambault wrote: "While we believe the volume targets are ambitious, Street and investor expectations seem more grounded and following a 23 per cent decline in the share price post the Model 3 unveil, we do not believe Tesla shares are fully capturing the company's disruptive potential.”
The automaker is aiming to hit 500,000 deliveries by 2018. To do this, Archambault said, Tesla will need to raise an additional $1bn in capital and another $7.5bn for its factory to deliver targets.