Tesla Motors Inc. has set an unrealistic goal for itself and will probably miss 2018 production forecasts by a whopping 66 percent, according to a report Wednesday by Goldman Sachs Group Inc.
Should that dissuade you from buying the stock?
"This is the sort of wild disconnect that Tesla Chief Executive Officer Elon Musk has wrought.
By moving up his already-ambitious goal of building 500,000 electric cars in 2020 by a full two years, he's left Wall Street models in disarray.
Tesla announced Wednesday that it's selling another $1.4 billion in stock to help fund the company's expansion.
Joseph Spak, an analyst at RBC Capital Markets, said the capital round was about $100 million less than his forecast, though it comes more than a year sooner than expected.
Goldman Sachs joined RBC and Robert Baird in brushing aside the new 2018 goal while simultaneously adjusting their expectations for 2020 to a range that's more consistent with Musk's original target—one that until recently had mostly been considered fantasy.