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.

Markets
Sponsored by
Index Last Change % Change
Dow 17,778.15 421.28 2.43%
Nasdaq 4,748.40 104.08 2.24%
S&P 500 2,061.23 48.34 2.40%
Treasuries 2.20 0.06 2.61%
Data as of 3:38am ET
Company Price Change % Change
Bank of America Corp... 17.53 0.27 1.56%
Apple Inc 112.65 3.24 2.96%
Oracle Corp 45.35 4.19 10.18%
General Electric Co 25.14 0.71 2.91%
Microsoft Corp 47.52 1.78 3.89%
Data as of Dec 18