Shares of Tesla Motors gained more than 3 percent Wednesday after Goldman Sachs' bullish call on the electric car maker's stock.
Goldman upgraded Tesla to "buy" from "neutral," saying it sees a 22 percent upside to its six-month price target of $250.
"While we believe the volume targets are ambitious, Street and investor expectations seem more grounded and following a 23% decline in the share price post the Model 3 unveil, we do not believe Tesla shares are fully capturing the company's disruptive potential," the bank said in a note to clients Wednesday.
The headline on the note said Goldman is "putting in our reservation for the Model 3." After the Wednesday close, Tesla announced a $2 billion stock sale to help ramp its production of the Model 3.
Tesla's stock closed at $204.66 Tuesday and was trading around $210 in the premarket Wednesday.
Goldman's valuation is based on five probability-weighted scenarios, "plus stationary storage optionality, all of which embed a 20% cost of capital."
TSLA valuation summary