Goldman Comes Away Positive on Tesla (TSLA) Momentum Following Meetings
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Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 20 | New: 18
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Analysts at Goldman Sachs made positive comments on Tesla Motors (NYSE: TSLA) Monday following investor meetings with management on April 20th and 21st.
Goldman noted the meetings underscored positive momentum for the important Model S program, with orders for the vehicle tracking at 4,000 from around 3,400 at year's end. The company expects to have the first 12 months of production sold out by the end of this year and is on track to launch the Model S by mid-2012, as it sourced virtually all of its components.
While the 2012 Model S production target remains at 20,000, Tesla is configuring the Fremont facility to manufacture 20,000 units on one shift per year versus the 10,000 originally planned.
On liquidity, while the company believes it has enough to complete the Model S program, it expects to conduct at $100-$200 million capital raise this fall to help cover the upcoming Model X.
Commenting on the implications from the meeting, Goldman analyst Patrick Archambault said "Management's reiteration of production and cost targets on the Model S post supplier sourcing and extensive prototype testing is a significant positive and gives us increased confidence that investors will be able to exceed the 25% annual returns used to discount our price target."
The firm did not change its Neutral rating and $29 price target on Tesla shares.
Goldman noted the meetings underscored positive momentum for the important Model S program, with orders for the vehicle tracking at 4,000 from around 3,400 at year's end. The company expects to have the first 12 months of production sold out by the end of this year and is on track to launch the Model S by mid-2012, as it sourced virtually all of its components.
While the 2012 Model S production target remains at 20,000, Tesla is configuring the Fremont facility to manufacture 20,000 units on one shift per year versus the 10,000 originally planned.
On liquidity, while the company believes it has enough to complete the Model S program, it expects to conduct at $100-$200 million capital raise this fall to help cover the upcoming Model X.
Commenting on the implications from the meeting, Goldman analyst Patrick Archambault said "Management's reiteration of production and cost targets on the Model S post supplier sourcing and extensive prototype testing is a significant positive and gives us increased confidence that investors will be able to exceed the 25% annual returns used to discount our price target."
The firm did not change its Neutral rating and $29 price target on Tesla shares.
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