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