The Zhitong Finance App learned that Goldman Sachs maintained Tesla's (TSLA.US) “buy” rating and raised the target price to 860 US dollars. Goldman Sachs said the increase in Tesla's target price was based on the company's higher pricing this year and increased sales in 2022 and 2023. The bank pointed out that the higher sales share of the Tesla Model Y model helps increase profit margins because the cost of the model is roughly the same as the Model 3, but the average selling price is higher.
Recent adverse factors facing Tesla include chip shortages, high freight costs, rising commodity prices, and limited Model S/X sales. These factors will hurt Tesla's earnings per share and profit margin. Goldman Sachs expects Tesla's earnings per share for the second quarter to be $0.94. The previous forecast was $0.84, and the market generally expected $0.96.