Tesla Slips Under $1000, Continuing Longest Losing Streak In 10 Months, Despite Goldman PT Hike
Shares of Tesla have slipped under $1000 per share in the pre-market session this morning, setting up to extend a 5 day losing streak for the company.
The streak of down days, should it continue through today’s cash session, would be the longest losing streak for the EV company in 10 months, Bloomberg noted this morning. The move comes in the weeks following Elon Musk offloading more than $10 billion worth of stock.
Meanwhile, Goldman Sachs, who has been involved in numerous Tesla fee-nancings financing efforts in the past, has name the automaker its “Top 2022 Pick” heading into the new year.
The investment bank said that Tesla is “.. best-positioned to benefit from broad-based EV market growth .. given its strong market share, global presence (including new factories it is ramping this year ..) and its leadership position in clean transportation/EVs ..”
“We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue,” Goldman wrote in a Sunday note. “We see upside to FactSet consensus estimates in the next few years. Our 12-month price target of $1,200 is based on 15X EV/Q5-Q8 revenue.”
Goldman predicts deliveries of the Cybertruck in Q4 2022 and says “we see the material upside in 4Q as a sign that the company can sell more vehicles in 2022 and 2023.”
Among those watching Tesla heading into the new week will be ARK’s Cathie Wood, who has tucked Tesla into her flagship ARKK ETF as its largest weighting. Recall, we pointed out just hours ago that ARKK’s investors have, in aggregate, lost money since the fund’s inception and that company insiders from her fund’s components, led by Elon Musk, have gone on a stock selling spree.
ARKK has started the year down close to 10%, Zero Hedge contributor Quoth the Raven wrote last week.
“In addition to horrific returns to start the year, Wood is once again underperforming her benchmark, already -5.92% lower than the NASDAQ is tracking,” he noted.
Outside of Tesla, ARKK’s 9 other Top 10 weightings were all down between -2.46% and -16.25% heading into the end of last week.
Tyler Durden Mon, 01/10/2022 – 09:05
