What happened

Shares of Tesla (NASDAQ:TSLA) are rising again on Wednesday, extending an extraordinary climb for the stock recently. Including the stock's intraday 6.4% gain as of 11:15 a.m. EST on Wednesday, shares are up more than 140% over the past four months.

The stock's sharp gain on Wednesday follows yet another analyst's decision to increase his 12-month price target for the electric-car maker's stock ahead of earnings on Jan. 29.

A red Tesla Model 3

Model 3. Image source: Tesla.

So what

Wedbush analyst Daniel Ives said in a note to investors on Wednesday that he believes the company's fourth-quarter earnings and its guidance for vehicle deliveries will not disappoint investors when Tesla reports results later this month.

He believes there's robust demand for vehicles in China and Europe. Further, he is particularly bullish on the company's opportunity in China following the start of production at the company's Shanghai factory earlier this year. The opportunity for Tesla in the China market is worth $100 to $300 per share, Ives estimates.

The analyst boosted his price target for the stock to $550 -- up from a $370 price target previously. The analyst has a neutral rating on the stock.

Now what

In addition to reporting its financial results for its fourth quarter on Jan. 29, Tesla will also likely provide guidance for vehicle deliveries in 2020. The automaker saw deliveries rise 50% year over year in 2019, and investors are expecting more sharp growth this year.