Goldman Sachs: 22% Upside in Tesla Over 6 Months

Goldman Sachs sees 22 percent upside in Tesla Motors Inc TSLA over the next six months with a $250 price target. Goldman Sachs also upgraded shares to buy after the firm downgraded US equities to neutral Tuesday. This is enough to send shares of Tesla more than three percent higher in early Wednesday trade. Analyst Patrick Archambault writes that a 22 percent climb in share price is feasible following the recent sell off because "we do not believe Tesla shares are fully capturing the company's disruptive potential." The research report does note that there are few short term catalysts other than the ramp of the Model X: "expectations are low in our view with many on the Sell/Buy sides expecting a cut to Tesla's 80-90k delivery target." Goldman Sachs expects Telsa to raise about $1 billion of capital. This potential raise was taken into account for the $250 price target. Shares of Tesla last traded at $210.30 in Wednesday's premarket session.