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.
However, Tesla had little effect on the broader markets for the day. The majority of the focus remains to be on stocks taking a breather before either heading much higher or much lower. Also, investors seem a little skittish ahead of the Fed chairman's testamony on Capitol Hill, which starts Wednesday. Fed Chairman Ben Bernanke essentially will be speaking for the entire FOMC, said guest contributor Robin Harding, the U.S. economic editor for the Financial Times. He added that he doesn't expect Bernanke to veer too far from the Fed's stance last seen in June or shed any light as to whether or not he will remain as the Fed chairman next year. Harding agreed with Seymour, who said he expects Bernanke to drift into the background until the data say otherwise. Harding also said he expects the Fed to remain supportive of the economy should the data justify it. However, the big question continues to be to what extent can investors rely on Bernanke's comments about what the Fed is going to do in 2014 and 2015 if he's not going to be there? Adami said that he doesn't expect the market to linger around this level for very long. We're either going to go significantly higher or significantly lower in the next few trading sessions. Perhaps slightly favoring the upside, he said that he wouldn't try and fade the next 15 or 20 points higher on the S&P 500. It's also obvious that with all of the earnings this week, stocks will be moving. One name that reported Tuesday morning was Coca-Cola ( KO), which had in-line earnings but a miss on revenue. Management blamed weather as one the factors contributing to the results. Tim Seymour said that he liked Coke, but investors didn't see the sales numbers they wanted going into the quarter. However, he did point out that margins looked very healthy and increased at an acceptable rate. Despite liking the company, he's not all for the stock over $40, calling it a little "toppy" around $41. Johnson & Johnson ( JNJ) also reported earnings Tuesday. Despite both a top- and bottom-line beat, the shares ended flat on the day, after initially making new all-time highs in the morning session.
Brown said that while there was nothing to dislike about the report, the stock is starting to get a little expensive over $90 per share, up almost 30% year to date. After being a shareholder since January, he said that he has swapped out his holdings in favor of the SPDR Healthcare ETF ( XLV), so that he can lock in gains, while maintaining exposure to the group. Finally, Goldman removed Ford Motor ( F) from its conviction buy list and put on General Motors ( GM). Adami was quick to note that Goldman still seems optimistic on shares of Ford after it raised its price target to $20 from $17. For now, he thinks the trade on Ford is to wait. There could be further downside ahead from this news but with earnings on July 24, he thinks that could be the next catalyst to drive shares higher. Other stocks in the news were American Express ( AXP), MasterCard ( MA) and Visa ( V), because of new potential European credits spending caps highlighted in a report by the Financial Times. Adami was quick to defend both Visa and MasterCard. He said these media reports continually try and knock these names down only to end up failing in the end. Once the dust finally settles, which it will, he says these names will certainly to be a buy. Brown said Visa would be the better of the two for investors to hold if there are spending caps. Since this report involves Europe, Visa has much lower exposure than MasterCard because it is two different companies there: Visa and Visa Europe. Finerman added she is long MasterCard and while the cap does seem like a rather significant figure, she isn't going to jump ship just yet. Michelle Lee, the show's host, added that American Express will report earnings Wednesday, which could add to the volatility. Also reporting earnings Wednesday is eBay ( EBAY), which will announce second-quarter results after the bell. Adami doesn't feel all that great about AXP heading into earnings. He said the stock is bumping up against price levels last seen in 2004, noting that the technicals -- at least so far -- aren't working in investors' favor. He suggested they lighten their positions by as much as 75% heading into the event and "live to fight another day," reasoning that he would rather buy on a breakout over $60 or a pullback under $50. Intel ( INTC), which is down 3% on the month and has so far lagged the S&P 500 year to date, also reports after Wednesday's close. Brown says the overall business is clearly in a decline, but that the company is making moves to try and stay relevant. He'd rather not play the name and instead listen to the conference call for some direction. Seymour also thinks traders should take a pass on International Business Machine ( IBM), citing a weak business cycle, poor technicals and unfavorable options positioning. In the final trade, Seymour is taking profits in General Motors, but will buy on a pullback. Taking the other auto trade, Brown thinks Ford is a buy after Tuesday's pullback. Finerman likes Ocwen Financial ( OCN) after the pullback. Adami said he's a buyer of Norfolk Southern ( NSC) -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook.