Tesla (TSLA) Shares Drop On Cautious Note From Goldman (GS)

On Friday, Tesla Motors (TSLA) printed a higher than average trading volume with the issue trading more than 6.81M shares, compared to the average volume of 5,663,480. The stock began trading at $257.99 to finish the session down $4.50, or 1.71% from the prior days close of $263.82. On an intraday basis it got as low as $255.27 and as high as $261.43. Ticker’s downside was attributed to a report from Goldman Sachs (GS) analysts [via Bloomberg] who said the company may need $6 billion in capital to build its Gigafactory in Nevada, set to be functional by fiscal 2017.

Goldman, who has a ‘Neutral’ rating  and $210 price target on TSLA, further noted that they remain cautious on the car maker due to the Gigafactory’s aggressive development timelines and Tesla’s potentially increasing capital needs for future projects.

“With numerous projects laid out (as well as those not currently communicated) ahead for Tesla, we see a possible need for additional capital,” GS wrote. Goldman’s estimates for Tesla’s capital needs would be for FY 2017 through FY 2025.

On valuation-measures, shares of Tesla Motors have a forward P/E of 79.06 and a P/E to growth ratio of 4.93. Trailing-12 profit margin is -6.83%, while operating and EPS register at -4.79% and ($1.11), respectively. The company has a market cap of $32.32B and a median Wall Street price target of $287.50 with a high target of $400.00.

On trading-measure, TSLA has a beta of 1.36 and a short float of 23.84%. In the past 52 weeks, shares of Palo Alto, California-based electric car maker have traded between a low of $116.10 and a high of $291.42 with its 50-day MA and 200-day MA located at $262.75 and $228.10 levels, respectively.

TSLA currently prints a one year return of about 57% and a year-to-date return of around 72.39%.

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