By Senad Karaahmetovic

Goldman Sachs Analyst Mark Delaney has lowered price targets on Tesla, (NASDAQ:), to $1,000.00 per shares (from $1200.00), General Motors to $46.00 (59.00) and Ford Motors to $14.00 (18.00).

New price targets reflect “broadly” lowered estimates that mirror “additional supply chain constraints in the near-term, and weaker demand in the intermediate term.” A more cautious stance on estimates comes along with a more conservative GDP forecast from GS’ economics team.

Delaney also cut the US SAAR forecast 2022/23 down to 14.5 millions from 15.75million.

“The COVID-related restrictions in Shanghai have lasted longer than we had initially expected, and even with Shanghai moving to reopen, we believe that parts/components supply remains a risk in the near to intermediate term. We have seen a slowdown in key indicators that are related to auto demand such as consumer sentiment and housing data. As a result, we’ve reduced our global forecast for auto demand with the help of our colleagues. Moreover, PMI metrics like the ISM index, and consumer demand datapoints, have also weakened,” Delaney told clients in a note.

With the most recent search data showing strong EV market demand due to soaring gasoline prices, the analyst anticipates that volumes will continue to rise.

Delaney prefers TSLA and GM, while is much more bearish on the “majority of the early stage companies with negative FCF in our coverage, especially those with what we consider as having limited competitive differentiation.”

“The rising interest rate environment will likely make it more difficult for early stage companies with negative FCF to raise capital,” the analyst concluded.