Today: Tesla again establishes an all-time high closing price, though prices fall in late trading after much-hyped announcement turns out to be new financing model. Also: Goldman Sachs research notes are negative on Hewlett-Packard (HPQ), so-so on Apple (AAPL); stocks gain overall.

Tesla hits another record high, but shares dip after announcement

Tesla closed at an all-time high for the second consecutive trading session Tuesday and kept attention squarely on itself with an announcement after Wall Street closed for the day. Shares slipped in after-hours trading, however, after the announcement turned out to be a new financing model, an offering that didn't seem to live up to the week-plus of hype dating back to CEO Elon Musk's tweet teasing the event.

Tesla established record intraday and closing prices Monday after Musk announced that the company had completed its first profitable quarter thanks to increased Model S production. On Tuesday, Tesla did not manage to reach Monday's all-time intraday high of $46.68, but the Palo Alto electric car maker's share established a new all-time closing high of $44.34 thanks to a gain of 0.9 percent.

Monday's bump added to increases that began the week before, when Musk said on Twitter that he would be making a big announcement, which was eventually delayed until Tuesday. For many investors, however, the announcement of profitability was more exciting than what Musk eventually disclosed Tuesday: A new financing model that resembles a lease but allows consumers to eventually own a Model S.

"We want to eliminate the uncertainty" of owning an electric car, Musk said in explaining the new effort during a conference call Tuesday. Tesla will tie the resale value of its all-electric sedans to the popular Mercedes-Benz S Class line of automobiles, with Musk guaranteeing the value of the cars with his own cash.

Basically, Tesla will be loaning the sale amount to the buyer, who can sell the car back to Tesla at the end of three years, or pay off the remaining debt during the next two years to own the car. Unlike a lease, consumers have full rights to sell the car during that time as long as they pay off the remaining principal.

"When considering the savings from using electricity instead of gasoline, depreciation benefits and other factors, the true net out-of-pocket cost to own a midrange Model S drops to less than $500 per month," Tesla said in a news release, though doubts about those figures were immediately rampant.

Musk said he got the idea for the lease arrangement from Redwood City solar installer SolarCity, which was founded by his cousins and for which Musk serves as chairman. Musk said the SolarCity offerings have helped the company reach new customers, and "I anticipate a similar effect with Tesla."

Investors must not have that same vision, as shares fell as low as $43.20, a 2.6 percent decline, during the conference call, which ended about 2:45 p.m. Pacific time.

HP falls, Apple treads water after Goldman notes target Silicon Valley

Hewlett-Packard received a dose of reality from Goldman Sachs on Tuesday, with the investment bank downgrading the Palo Alto tech giant's stock to a "sell," sending shares down after a hot first quarter that saw HP stock gain 67.3 percent.

HP fell 5.2 percent to close at $22.10, its lowest closing price since mid-March, after a research note threw cold water on optimism that sparked the first-quarter turnaround. The note contended that Wall Street was giving too much credit to the turnaround plan authored by CEO Meg Whitman, which is far from being termed successful.

Investors are "attributing an unreasonably high probability to the turnaround's success and incorrectly assuming fundamentals have already bottomed," analysts wrote.

Apple also faced Goldman's sword, but it did not cut the Cupertino company as deeply. Goldman took Apple off its "Conviction List," which names the stocks Goldman has the strongest sentiment about, for the first time since December 2010. Analyst Bill Shope wrote that Apple's iPhone 5 sales were lower than he expected, leading to the change.

Goldman still suggests investors buy Apple, however, despite dropping its price target from $660 to $575.

"Even with the investor concerns that have mounted as of late," analyst Bill Shope wrote, "we believe most agree that the company has brighter secular prospects than typical value tech names," including Santa Clara chipmaker Intel (INTC) and Redwood City software giant Oracle (ORCL).

Apple stock traded close to flat Tuesday, gaining 0.2 percent to close at $429.90. That trading session could be deemed a success following three straight declines of at least 2 percent, capped by the company's 3.1 percent descent Monday after CEO Tim Cook apologized to Chinese customers for its warranty policy, which seemed to defrost tensions in the country. Apple stayed behind Exxon in the battle for highest market capitalization in the United States, a title the tech giant lost on Monday.

Google and Yahoo gain, Zynga and EA fall in good day for Wall Street

Stocks bounced back with an overall gain Tuesday, with all three major U.S. indexes advancing 0.5 percent or more. Silicon Valley stocks were not as successful, but did advance, with the SV150 index of the region's top technology firms gaining 0.3 percent.

Google (GOOG) had a strong day despite news that six European countries had ganged up to decide penalties for the company's privacy policy, which was revamped more than a year ago; the Mountain View search giant gained 1.5 percent to close at $813.04. Yahoo (YHOO), which battles Google in the digital-advertising realm, again hit its highest prices since 2008 as a report suggested it could bid for mobile rights to NFL games; the Sunnyvale company gained 1.2 percent to close at $23.78. Cisco (CSCO) (up 1.9 percent), Adobe (ADBE) (up 1.1 percent) and Oracle (up 1 percent) also gained on the day.

On the negative side, Zynga slid 2.9 percent to $3.07 after executive Dan Porter -- who led "Draw Something" creator OMGPop before it was acquired by Zynga -- left the San Francisco social-gaming leader. Redwood City rival Electronic Arts (ERTS) did not perform much better, dropping 2.1 percent to $17.55 as it continues to search for a replacement CEO after the announced departure of John Riccitiello. Some of Silicon Valley to performers in the first quarter -- a list that also included HP and Zynga -- struggled Tuesday, with Netflix (NFLX) declining 3.2 percent, SunPower (SPWRA) dropping 4 percent and LinkedIn declining 0.5 percent.

Silicon Valley tech stocks

Up: NetApp, Cisco, Google, Yahoo, Adobe, Oracle, Tesla, Symantec, eBay (EBAY), Workday, Gilead, Intuit (INTU), Apple, Intel

Down: HP, SunPower, Netflix, Zynga, EA, Advanced Micro Devices, SolarCity, Juniper, Nvidia, Applied Materials, Palo Alto Networks, Splunk, VMware, LinkedIn, Yelp, Facebook

The tech-heavy Nasdaq composite index: Up 15.69, or 0.48 percent, to 3,254.86

The blue chip Dow Jones industrial average: Up 89.16, or 0.61 percent, to 14,662.01

And the widely watched Standard & Poor's 500 index: Up 8.08, or 0.52 percent, to 1,570.25

Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services. Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/mercbizbreak.