UPDATE: Goldman Sachs Nudges Higher Price Target on Tesla

On Tuesday morning, Goldman Sachs raised the price target for

from $170 to $200. Shares are reacting to the upgrade, trading up 1.3 percent to $234. Analyst Patrick Archambault believes that Tesla's auto business is worth $180 per share, but if the segment were to be truly disruptive “to the whole auto industry, not just luxury vehicles” there would be considerable upside. “Keying off the history of the iPhone, (adjusting for the replacement cycle) would imply 3.1M units by 2025 and a PV of $442 per share,” said the analyst. Archambault also sees a “significant” opportunity in stationary storage worth $20 per share. “Plans to bring battery pack costs down to $125/KWh once the gigafactory is fully ramped, the math works to get to positive NPV projects on the commercial side, and widespread grid parity on residential solar may not be that far off, even without ITC and state tax credits,” said the analyst.