NEW YORK ( TheStreet) -- The biggest headline of Tuesday was the selloff in Telsa Motors (TSLA) because of a report issued by Goldman Sachs. Although the firm did raise its price target, it cited best, worst and in-between cases for Tesla's auto sales, none of which were even close to supporting the current stock price.
Guy Adami said on CNBC's "Fast Money" TV show that Tesla likely still has more pain ahead. With over 32 million shares traded Wednesday, the action wasn't pretty and it proves that there were a lot of weak hands holding the stock. He added that it's typical for stocks to go down much faster than they go up.
Likewise, Josh Brown agreed, adding that stocks "take the stairs up and the elevator down." He also pointed out that Tesla lost nearly 20% of its market cap today and that parabolic stocks like this are typically an accident waiting to happen. He added that BMW and Mercedes are nipping at Tesla's heels with their own electric cars.
Although the action was ugly, he said the stock could be due for a bounce around $100 or so, but it's only for the pros. "This isn't one you can put on and go fishing," he concluded, noting the short float is still near 25%.Tim Seymour said it was a "total mo-mo stock" and he doesn't think most investors in Tesla aside from the institutions even know what they're holding. According to the charts, he said, $80 is when the stock gets interesting on the long side. Karen Finerman said she is now short the stock, but as a very small trade via July out-the-money puts. She noted that it was broken momentum play and that the selling could continue. The report from Goldman Sachs essentially laid out three scenarios: If Tesla sells 200,000 units, then the price target is $113. If Tesla sells 150,000 units, then the price target is $83. If Tesla sells 105,000 units, then the price target is $58. The firm now has a $85 price target on the stock, well below its opening price of $126.28.