Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Close up of Tesla logo on a charger at a Supercharger rapid battery charging station. Photo: Smith Collection/Gado/Getty Images

A new Goldman Sachs research note suggests that Tesla is not equipped to meet its upcoming targets for production of the mass-market Model 3. The analysis led by Goldman's David Tamberrino also sees erosion of the stock price that regained momentum last week when Tesla reported its latest production and delivery data.

Why it matters: It paints a daunting picture of headwinds the Silicon Valley automaker faces as it tries to scale up production of the car that is key to the company's long-term future.

Tesla hopes to reach production of 5,000 Model 3s per week by mid-year after reporting that it made over 2,000 during the final week of the first quarter. But the Goldman note states: "[W]e believe the sustainable production rate for 2Q18 is most likely below the 2,000 vehicle mark the company achieved in the final week of the quarter."

One level deeper: They say the company can likely produce around 1,400 per week sustainably right now, which they note is better than their previous forecast but also implies bottlenecks at Tesla's Fremont, California factory.

They see other headwinds too, arguing that demand for other Tesla models will be "challenged" going forward as Tesla cars lose their eligibility in the second half of the year for the $7,500 consumer tax credit, which is capped at 200,000 vehicle sales per automaker.

  • The note predicts that Tesla will have to return to capital markets to raise more money this year.

All told: The analysis is cold water on the company that saw its share prices climb again beginning last week. "We maintain our Sell rating, and our 6-month price target becomes $195," they write. Tesla is currently trading at around $304 per share.

Go deeper

9 hours ago - Health

Food banks feel the strain without holiday volunteers

People wait in line at Food Bank Community Kitchen on Nov. 25 in New York City. Photo: Michael Loccisano/Getty Images for Food Bank For New York City

America's food banks are sounding the alarm during this unprecedented holiday season.

The big picture: Soup kitchens and charities, usually brimming with holiday volunteers, are getting far less help.

11 hours ago - Health

AstraZeneca CEO: "We need to do an additional study" on COVID vaccine

Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

AstraZeneca CEO Pascal Soriot said on Thursday the company is likely to start a new global trial to measure how effective its coronavirus vaccine is, Bloomberg reports.

Why it matters: Following Phase 3 trials, Oxford and AstraZeneca said their vaccine was 90% effective in people who got a half dose followed by a full dose, and 62% effective in people who got two full doses.

Updated 13 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus cases rose 10% in the week before Thanksgiving.
  2. Politics: Supreme Court backs religious groups on New York coronavirus restrictions.
  3. World: Expert says COVID vaccine likely won't be available in Africa until Q2 of 2021 — Europeans extend lockdowns.
  4. Economy: The winners and losers of the COVID holiday season.
  5. Education: National standardized tests delayed until 2022.