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Goldman Sachs has just raised its price target for Tesla shares (TSLA)

Goldman Sachs has just raised its price target for Tesla shares (TSLA)
Goldman Sachs has just raised its price target for Tesla shares (TSLA)

A Wall Street institution seems to believe that Tesla (NASDAQ:TSL) is preparing for a comeback. Goldman Sachs analyst Mark Delaney raised his price target for the electric vehicle maker from $175 to $248.

This significant increase follows Tesla’s recent delivery record, in which the company reported 444,000 deliveries for the second quarter instead of the 439,000 expected by analysts.

Does this mean investors should expect Tesla stock to maintain its uptrend? Shares have been trending higher for 11 days in a row. Let’s take a closer look at this latest Wall Street prediction and assess what it is likely to mean.

What is happening with TSLA stock?

Despite the increased price target, TSLA’s share price is down slightly at the time of writing, deviating from its recent uptrend.

A closer look at Delaney’s assessment might explain why. The analyst is actually not that optimistic about TSLA stock. His price target of $248 represents a downside potential of almost 7%. Moreover, the analyst still calls the stock a “Hold” and maintains a Neutral rating.

In addition, the overall mood on Wall Street towards Tesla is still extremely mixed. While long-time TSLA stock bull Adam Jonas of Morgan Stanley recently reiterated a buy recommendation, most experts are not so optimistic. Of the 35 analysts surveyed, only 13 are in favor of a buy.

InvestorPlace Analyst Louis Navellier predicts the company will close 2024 with losses. And our contributor Joel Baglole warns investors not to be fooled by the company’s recent delivery successes.

Why it is important

While it is good for Tesla that Goldman Sachs has raised its price target, investors should not ignore the fact that analysts’ overall outlook for the company is anything but positive.

In addition, the quality of Tesla cars was recently downgraded by market research firm JD Power, which warned that Tesla was causing significant problems for the entire industry.

Overall, sentiment towards TSLA stock remains more negative than positive. This does not bode well for the coming months.

At the time of publication, Samuel O’Brient had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

Samuel O’Brient is a reporter for InvestorPlace, where he focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on breaking political news that investors should follow.

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