Investment firm Jefferies raised its Tesla price target to a Wall Street high $2,500 per share from $1,200 on Wednesday.
That implies a roughly 19% climb from its current levels.
The case for investment in Tesla "has too often been reduced to cars." Analysts feel Tesla's battery innovations and cost efficiencies could hold more value.
Jeffries said legacy car makers will catch up to Tesla's levels only once they ditch outdated products and build out electric-vehicle production.