TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Shady behavior by Goldman Sachs

Discussion in 'TSLA Investor Discussions' started by X Yes?, Oct 6, 2016.

  1. X Yes?

    X Yes? Member

    May 5, 2016
    San Diego
    Goldman Downgrades Tesla, Months After Underwriting Share Sale

    Goldman analyst Patrick Archambault upgraded Tesla on May 18 -- the same morning that Tesla launched its secondary stock offering. Goldman and Morgan Stanley were lead managers on the deal, and Goldman said at the time that the call was made independently of the underwriting team.

    Today, a downgrade. It appears they are not invited to participate in the next secondary offering.

    Corruption on Wall Street?
  2. kelevra

    kelevra Member

    Oct 28, 2016
    in theory there should be a "chinese wall" between the research division of the bank and the emission division because there are obvious conflicts of interest. history shows that this "chinese wall" doesn't always exist. as you may have heard the environment in banking is rough and often not legal. Maybe you noticed the high legal cost banks have. if you are generally interested in this kind of stuff i recommend f.e. the movie "the big short"
  3. bdy0627

    bdy0627 Active Member

    May 19, 2015
    Appleton, WI
    It's obvious to me and I'm not in the banking/stock market industry. The timing of their upgrades previously and downgrades more recently are interesting, to say the least. Why did they wait until immediately after Tesla's announcement of record deliveries for Q3 to release their downgrades? That timing makes no sense to me and appears extremely suspect given the extremely positive news Tesla had just announced. Why wouldn't they have released the downgrades earlier, after the announcement of the SCTY acquisition? Or, if they were waiting, why not wait until at least after Q3 financials were released? It suggests the timing was an effort to mitigate Tesla's positive delivery news, which was causing the SP to rally. You can say many things about wall street but they have never been accused of being naive.
    • Like x 1
  4. dennis

    dennis P85D

    Jul 26, 2012
    Silicon Valley CA
    While I am highly suspicious of the May upgrade, there is a less nefarious explanation for the timing of the recent downgrade. Goldman had assigned a new analyst to the automotive sector. He has a different opinion on Tesla than his predecessor, and it was published as part of a report on the whole sector.
    • Helpful x 1
  5. GoTslaGo

    GoTslaGo Learning Member

    Dec 25, 2015
    Yes, and along with recent GS announcement, on the same day there was an announcement of the previous analyst (Archambaut(sp?)) starting with a new company in California. May have raised questions of reliability of GS data/analysis if there was a lag between their new analyst assessment and market news that their previous analyst left (i.e.--new analyst just got thrown in and has to figure things out at the last minute.).

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.