DETROIT (Bloomberg) -- Tesla Motors Inc. rose the most in seven weeks after a Dougherty & Co. analyst more than doubled her price target for the electric-car maker, a day after Goldman Sachs Group Inc. said the shares may fall.
Tesla gained 10 percent to $120.25 at the close in New York, the biggest one-day increase since May 28. The Palo Alto, Calif.-based company's shares have more than tripled this year, compared with an 18 percent climb for the Russell 1000 Index.
Andrea James, an analyst for Dougherty & Co., raised her price target for Tesla to $200 from $90 in a report today. But Goldman Sachs on Tuesday said the shares could decline to $84 and $113 under a best-case scenario. That spurred a 14 percent drop.
Goldman Sachs also cut its auto sector rating to neutral.
"We ultimately believe Tesla is a $300 stock at the factory's maximum capacity, which we hair cut to $200 for the execution risk," James wrote. "We believe that Tesla is the only firm that has figured out how to make" electric vehicle technology "work."
The company reported a first-quarter profit this year, its first, on rising sales of its $69,900 Model S sedan. Tesla is scheduled to release an SUV in 2014 and plans to introduce a compact SUV and smaller sedan.