Two of Tesla Inc TSLA 1.45%’s biggest critics were forced to eat a little crow on Wednesday when the company reported a narrower-than-expected per-share loss, said it burned through significantly less cash than expected and reiterated its aggressive Model 3 production targets.
Almost a month ago, Goldman Sachs analyst David Tamberrino cut the firm’s price target for Tesla from $190 to $180, implying roughly 50 percent downside for the stock. The same day, Citron Research’s Andrew Left discussed shorting Tesla on CNBC.
Following Thursday morning’s move, Tesla shares are now up 6 percent since that July 5 close, and bulls who took a Goldman/Citron contrarian position are sitting on solid gains.
For what it’s worth, Tamberrino raised his price target for Tesla on Thursday to $200. While he admitted Tesla delivered impressive auto gross margins and improving Model S and Model X order rates, nothing changed about his bearish long-term thesis.
“We remain Sell rated as we see downside potential to the Model 3 launch curve, which we expect will likely drive disappointing Auto gross margins, and further cash burn,” Tamberrinowrote, repeating almost verbatim his bearish argument a month ago.
Tesla has given Goldman fits in the past year.
Goldman first downgraded Tesla from Buy to Neutral back in October of 2016, lowering its price target from $240 to $185. In the three months that followed, Tesla shares surged 13.9 percent. Goldman then downgraded the stock again from Neutral to Sell on February 27, lowering its price target to $185. Tesla stock then proceeded…
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