Goldman Sachs Punishes Elon Musk For Getting Its Hopes Up

And also makes David Einhorn’s day.

Last month, Tesla founder Elon Musk, in a not-at-all-covering-his-ass-making-it-up-as-he-went-along kind of way, called his buddies at 200 West Street and said, “Hey, think you’d like to help me take this thing private?” Imagine their excitement for the fees earned on a $70 billion-plus deal that was definitely happening and not at all just a tweet Musk sent while tripping, on which they’d have essentially nothing to do, since Musk already had everything lined up. Why, of course they’ll help you take this thing private!


But Elon isn’t taking Tesla private. And Goldman will thusly not be getting paid. So it’s not afraid anymore to tell you what it really thinks of its tease of a former client.

The firm resumed coverage of Tesla with a sell rating, predicting the competition will cut into the company's share of the electric car market…. Tamberrino gave a $210 six-month price target for Tesla shares, representing 30 percent downside to Friday's closing price….

"Altogether, we remain bearish on the company's ability to execute, achieve its targeted production ramp/margins, and sustain FCF [free cash flow] generation."

We await photographic evidence of David Einhorn gleefully prancing around in his stylish shorts.

Goldman: Tesla shares to drop 30% in the next 6 months due to increased competition [CNBC]