Tesla shares bounce back

July 17, 2013: 4:18 PM ET
tesla stock ytd
Click chart for more on Tesla
NEW YORK (CNNMoney)

Tesla Motors made a comeback Wednesday, one day after Goldman Sachs issued a bearish research report on the electric car maker.

Tesla (TSLA) shares rose more than 10%, recovering most of the previous day's sharp losses. It ended the day at $120.25.

The stock plunged Tuesday after Goldman Sachs (GS) analysts gave Tesla a price target of $84 a share, based on the average outcome of three scenarios it foresaw for the company.

The report was released one day after Tesla shares hit an all-time trading high above $133 a share, capping a spectacular run from $33 a share at the beginning of the year.

Tesla, the brainchild of technology mogul Elon Musk, reported its first quarterly profit in May, and its flagship Model S has received rave reviews. But the 10-year-old company is merely expected to break even this year.

Related: Tesla alternatives: Four cheap electric cars

In its report, Goldman outlined three different scenarios for Tesla, including one based on modest assumptions for sales and earnings, which it believes would yield a stock price of $58 a share.

Who is Elon Musk?

But the bank also envisions a more bullish case where Tesla sales and profits exceed expectations and the stock rises to $113 a share.

Under its "mid-case" for Tesla, Goldman expects sales of 150,000 units, consistent with the company's target, and operating margins somewhere between the two extreme scenarios.

The stock price in that case should be $83 a share, according to Goldman's calculations.

Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 17,113.54 61.81 0.36%
Nasdaq 4,456.02 31.31 0.71%
S&P 500 1,983.53 9.90 0.50%
Treasuries 2.47 -0.01 -0.32%
Data as of 7:54am ET
Company Price Change % Change
Bank of America Corp... 15.52 0.00 0.00%
Apple Inc 94.72 0.78 0.83%
Microsoft Corp 44.83 -0.00 -0.01%
Intel Corp 34.79 0.73 2.14%
Facebook Inc 69.27 -0.13 -0.19%
Data as of Jul 22
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.30%4.25%
15 yr fixed3.29%3.32%
5/1 ARM3.45%3.63%
30 yr refi4.27%4.20%
15 yr refi3.26%3.24%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com