Goldman Sachs analysts frequently get wrong. I know this from my past experience. Sometimes it's because their analysts don't know what they are talking about, sometimes they intentionally give misleading predictions. The intentional part is my speculation, I don't have proof.
Anyway, based on this new GS analyst's track record, and based on his reasoning, I think he just doesn't know what he is dealing with. I don't mind if someone gives a price target of $150 or $50. The key is their reasoning has to make sense. In this case he just made onto my ignore list.
I checked the spreadsheet how GS got the previous $240 and today's $185. Both of their analysts don't know what they are talking about. ( I try hard to not use the word idiot). They are wrong on several major factors.
First, when EVs are shown better AND cheaper than ICEs, they will just take over like digital camera replace film camera. GS is missing a factor by 10 in this prediction. They think ICE will continue to dominate the market forever?
Second, they think there is a 2/3 chance Elon is just an ordinary CEO, Tesla will become an ordinary car company in a tiny EV market. In reality, there is less than 5% chance for that case. I think Elon Musk can not be compared to the names they listed. Elon is in his own league, way above any names they mentioned in the table. Tesla's intrinsic value as of today is several fold more than GS's price target. I have my own table and calculation. There is no need to argue with them. I take advantage and add shares.
However, recently I saw several posts saying they are 120% long, this sometimes leads to trouble.
My general rule is carefully study and pick 5 best stocks, 20% in each, watch and let them grow. If a case is really compelling, I can go up to 90% on one stock + 10% cash. That's assume stocks only represent half of my total asset. If someone hold 120% long one stock, suddenly for whatever reason, the market gives him a really great buying opportunity, he probably doesn't have fund to buy, and could be forced to sell. I am talking about 2002 and 2008 type of opportunities.
I have the belief nobody can predict short term with decent reliability. Otherwise he can quickly become a trillionaire using leverage. I guess Tesla has a few cards that could help the stock in near term. Just a guess, not a prediction.