Shady behavior by Goldman Sachs

[X Yes?]

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?

 

[kelevra]

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"

 

[bdy0627]

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.

 

[dennis]

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.

 

[GoTslaGo]

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.

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.).