Looming competition from luxury automakers will shake Tesla’s sales with the company’s shares expected to decline by 30 percent, says Goldman Sachs, citing numerous electric vehicle launches by other manufacturers.
“We see the medium-to-longer term industry backdrop as challenging for Tesla’s products,” Goldman analyst David Tamberrino said in a note to clients. “This follows from an increasing number of EV launches from both traditional OEMs and other startup competitors — at a time when the company’s product cadence hits a gap.”
The analyst gave a $210 six-month price target for Tesla shares, which represents 30 percent drop from Friday’s closing price of $301.66. At the close of trading Tuesday, the company’s stock was down more than four percent to $288.95.
A Smart Vision EQ fortwo concept car at the Las Vegas Convention Center during the 2018 CES in Nevada, US January 9, 2018 © Steve Marcus / Reuters
“We believe the company will see pressure to its lead in EVs as competition catches up,” the note reads.
The warning came just ahead of Mercedes-Benz’s presentation of EQC sport utility crossover. The Daimler-owned company is planning to start production of its much-anticipated electric sport utility vehicle (SUV) in the first half of 2018.
The BMW all electric i Vision Dynamics concept car at the Los Angeles Auto Show in California, US, November 29, 2017 © Mike Blake / Reuters
Apart from Daimler, most of the European majors, including Audi, BMW, Jaguar and Porsche, are planning electric vehicle launches. Jaguar Land Rover offers the I-Pace electric SUV, while Volkswagen’s luxury arm Audi is due to unveil its e-tron in San Francisco later this month.
The Mini Electric Concept Car at the Los Angeles Auto Show in California, US, November 29, 2017 © Mike Blake / Reuters
Alongside top-ranked car beasts, Dyson, commonly associated with vacuum cleaners and hand dryers, is reportedly planning to join the global race to produce electric vehicles. Last week, the British company announced plans to build a test track in southwest England for testing the electric car it is currently developing and planning to launch in 2021.