Goldman Sachs’ analyst Patrick Archambault issued a new note to clients today about Tesla (TSLA) and sees 22 percent upside for the company’s stock, which has been down following its financial results earlier this month and the announcement that Tesla aims to increase its annual vehicle production to 500,000 cars in 2018 – two years earlier than previously planned. 

Several other banks issued downgrades on Tesla’s stock (TSLA) following the announcement, primarilly due to the anticiapated capital raise that would be needed for the automaker to significantly increase its production plan.

Goldman Sachs upgraded the shares to ‘Buy’ with a $250 price target, while factoring in a capital raise of $1 billion.

It is in the lower-end of what other analysts are suggesting in term of size for what is now seen as an immenent capital raise. The range of estimates starts at $1 billion and goes up to $5 billion.

The analyst feels that shares are currently capturing the Tesla’s “disruptive” technology on the EV market in full since the stock’s recent tumble. He also thinks Tesla will be a major player in shared mobility with a Uber-like service potentially combined with self-driving technology..

Tesla’s stock (TSLA) is up over 2% in pre-market trading following Archambault’s note. As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance.

Archambault is ranked #244 out of 3,910 analysts on TipRanks, where he achieved a trackrecord of 57% success rate and 15.8% average return.

About the Author