Tesla's Cozy Relations With Banks Have Lost That Loving Feeling
- Bank scraps buy rating it had placed on the shares in May
- Rating cut comes at critical time for electric-car company
Tesla's Road to Sales Success and Driverless Tech
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Goldman Sachs Group Inc. downgraded Tesla Motors Inc., ditching a buy rating it placed on the stock in May as the investment bank co-managed a $1.4 billion stock offering for the electric-car maker. Shares fell the most in five weeks.
Goldman analyst David Tamberrino cut Tesla to “neutral” from a “buy” in a note Thursday, saying that the proposed merger with SolarCity Corp. makes Tesla a riskier bet. The bank lowered its price target to $185 from $240, helping send Tesla shares down as much as 4 percent, the biggest intraday drop since Sept. 1.