Today Tesla Motors’ stock price declined $18.21 or 14 percent, closing the day at $109.05 on the NASDAQ exchange.
The decrease was its largest in one day since Jan. 13, 2012 when it lost 20 percent, and follows one day after being listed to the NASDAQ 100 Index.
Blame for the drop was pinned on a research note by Goldman Sachs analyst Patrick Archambault which pegged TSLA’s value far lower than its present price.
Archambault’s note pertained to the automotive sector as a whole, but with regard to TSLA, it set a six-month target up from $61, but at just $84, while leaving his “neutral” rating intact.
He offered three potential long-term scenarios in his analysis.
Under one scenario, the analyst projects Tesla selling 105,000 cars including the smaller car it has yet to bring to market along with the Model S. Here he projects 14.6 percent operating margins and earnings per share of $5.99.
In another potential future, he projects 150,000 sales, 14.8 percent margins and $8.59 earned per share.
And in the third potential scenario he foresees 200,000 sales, 15.2 percent margins and $11.69 per share in earnings.
The $84 per share constitutes an averaging of the three scenarios which means if someone holds TSLA stock bought today at $109, that person can plan on losing $25 per share in the next six months.
Not a pretty picture, and not good for the TSLA price today as the news hit.
Tesla issued a press release today saying nothing about the stock drop, but instead stating that on Wednesday Aug. 7 at 2:30 Pacific time it will release its Second Quarter 2013 financial results.
Also not stated is whether the results will be very good, as other Tesla watchers have predicted, noting Tesla has of late been exceeding its previously stated production levels, with the potential therefore to sell more cars.