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 16,880.36 -31.75 -0.19%
Nasdaq 4,462.90 20.20 0.45%
S&P 500 1,970.07 0.12 0.01%
Treasuries 2.55 0.09 3.74%
Data as of 9:21pm ET
Company Price Change % Change
Bank of America Corp... 15.58 0.24 1.56%
Genworth Financial I... 13.98 -2.28 -14.02%
Facebook Inc 74.68 0.97 1.31%
Pfizer Inc 29.26 -0.21 -0.71%
Apple Inc 98.15 -0.23 -0.23%
Data as of 4:01pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.19%4.27%
15 yr fixed3.27%3.27%
5/1 ARM3.36%3.35%
30 yr refi4.17%4.23%
15 yr refi3.25%3.25%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com