Elon Musk calls out Goldman Sachs after negative report on Tesla

Investing


Tesla chief executive Elon Musk is calling out Goldman Sachs after the bank encouraged investors to sell the carmaker’s stock.

“Place your bets,” Musk quipped on Twitter, appearing to challenge would-be sellers to exit at their own risk.

The CEO’s response comes shortly after Goldman analysts advised clients to ditch the stock, worried that Tesla won’t be able to meet its Model 3 production goals by the end of June.

“We believe the sustainable production rate for the second quarter of 2018 is most likely below the 2,000 vehicle mark the company achieved in the final week of the [first] quarter,” Goldman analyst David Tamberrino wrote Tuesday. “We see the company likely sustaining Model 3 production around the 1,400 per week mark.”

Tesla’s share price, which has declined 2 percent this year, is closely related to Model 3 production. So when the carmaker reiterated its production target of 5,000 Model 3 sedans per week by the end of June, shares popped.

Tesla’s stock is up roughly 20 percent since the announcement last week and closed up 5.1 percent Tuesday.





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