Tesla’s massive run-up is likely over for now, according to Goldman Sachs. 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 still represents 3.4% downside from Friday’s close. “While the primary reason for the change in our view is that we think the market is now giving the stock more credit for its longer-term opportunities, we are also cognizant of the difficult pricing environment for new vehicles that we think will continue to weigh on Tesla’s automotive non-GAAP gross margin this year,” analyst Mark Delaney said in a note. Shares of Tesla have been on a run this year. The stock has gained more than doubled in 2023, and it’s up 25% this month alone. Delaney attributed Tesla’s recent surge to strong monthly sales, less markdowns on vehicles, Inflation Reduction Credits hitting the rear-wheel drive Model 3 and news that companies including Ford and Rivian will use the company’s charging network. Delaney added that Tesla stock will still remain strong as the overall EV market continues to grow. “Importantly, we remain positive on EV adoption, and we continue to see the most investing opportunities among our broader set of suppliers, especially those with higher content to enable the shift to EVs and electrification,” he said. Goldman now joins other major Wall Street shops including Morgan Stanley and Barclays in downgrading Tesla stock over the past week. TSLA YTD mountain Tesla stock has climbed more than 108% this year. — CNBC’s Michael Bloom contributed to this report.
