Tesla will have to tap markets this year, Goldman Sachs says

Tesla Inc.'s TSLA, +5.10% "sustainable" Model 3 production rate for the second quarter is likely below 2,000 sedans, and the Silicon Valley car maker will be keeping Model 3 production around the 1,400-a-week mark, below market expectations and company forecast, analysts at Goldman Sachs said in a note Tuesday. The analysts, led by David Tamberrino, kept their sell rating on the stock and cut their price target to $195, from $205. Moreover, demand for Tesla's Model S luxury sedan and Model X SUV is "challenged," they said. "Lastly, we still expect the company to raise capital later this year given Model 3 cash burn and targeted growth projects," the analysts said. Goldman's six-month $195 price target represents a 36% decline over Tuesday prices for Tesla.

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