Goldman Sachs says Tesla’s surge may be over for now. The bank downgraded the electric car maker to neutral from buy on Sunday. Goldman did raise its price target to $248 from $185, but the new forecast is still down 3.4% from Friday’s close. “While the main reason for our change in view is that we believe the market is now placing more faith in the stock’s long-term opportunity, we also recognize the difficult new vehicle pricing environment, which we believe will continue to impact Tesla this year. ’s auto non-GAAP gross margin,” analyst Mark Delaney said in a note. Tesla’s stock price has been rising this year. The stock has more than doubled in 2023 and is up 25% this month alone. Delaney attributed Tesla’s recent surge to strong monthly sales, fewer vehicle markdowns, inflation-cut credits hitting the rear-wheel-drive Model 3, and news that companies like Ford and Rivian will use the company’s charging network. Delaney added that Tesla stock will remain strong as the overall electric vehicle market continues to grow. “Importantly, we remain positive on electric vehicle adoption, and we continue to see the greatest investment opportunities among a broader set of suppliers, particularly those with higher Electric vehicles and the transition to electrification.” Goldman Sachs has now joined other major Wall Street banks such as Morgan Stanley and Barclays in downgrading Tesla stock in the past week. TSLA Shares of Tesla have risen more than 108% so far this year. — CNBC’s Michael Bloom contributed to this report.
