Goldman Sachs dampens demand, EPS forecasts for Tesla
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Tesla (NASDAQ:TSLA) shares ticked modestly lower in premarket trading on Wednesday after Goldman Sachs lowered delivery forecasts.

The bankâs analysts now foresee 420K deliveries in the fourth quarter, down from 440K in prior forecasts. Into 2023, the bank anticipates full-year deliveries to reach 1.85M, revised downward from 1.95M in the bank's previous models.

âWe believe our reduced estimates are consistent with the added incentives and price reductions for certain Tesla vehicles this quarter, reduced wait times, and soft macro indicators,â the analysts explained. âThe fact that macro indicators in several regions are moderating and Tesla is pulling multiple demand levers suggest that global supply/demand is now softer for Tesla.â

The price cuts pursued by the automaker and expectation of lower production prompted the bank to reduce EPS estimates for 2022 through 2024 as well. The team cut their price target to $235 from a prior $305 and advised shares could fall to $135 in a bear case.

To be sure, the bank remains bullish on Tesla (TSLA) in the long term. The team indicated that there remains âsignificant value related to the company's leadership position in clean energy and advanced technologyâ that supersede focus on Elon Muskâs Twitter (TWTR) involvement taking center stage at present.

âWe believe that Tesla remains well positioned for long-term growth as an EV cost structure and full solution leader (e.g. providing vehicles, charging, storage, software and services in a well integrated manner), and we maintain our Buy rating on the stock,â the team concluded.
Read more on investor concern over Muskâs increased attention to Twitter.