Shares of Tesla (NASDAQ:TSLA) jumped higher on Tuesday. As of 12:30 p.m. EST, the stock was up about 6%. The gain adds to a torrid run-up for the electric-car maker's stock over the last six months.
The stock's sharp move higher on Tuesday comes as several analysts upgraded their price targets for the stock.
In a note to investors on Tuesday, Bernstein analyst Toni Sacconaghi lifted his 12-month price target for Tesla shares from $325 to $730 and maintained a "market perform" rating, which implies that shares are likely to rise in line with the S&P 500.
Sacconaghi said he's been wrestling with how to value the stock after its big run-up. But he notes that shares have held strong following a meteoric rise before -- namely in 2013, when shares surged nearly 344%, from below $34 at the beginning of 2013 to $150 by the end of the year.
Meanwhile, Morgan Stanley analyst Adam Jonas increased his price target for Tesla shares from $360 to $500. Though the analyst kept an "underweight" rating on the stock, implying it will underperform market indices such as the S&P 500, he boosted his "bull case" price target for the stock from $650 to $1,200. Jonas said the bull case implies unit sales volume of 4 million annually by 2030 and a 12% operating margin.
Tesla stock has benefited from growing excitement from investors regarding the company's growth prospects. In 2019, deliveries grew 50% year over year to about 368,000. In 2020, management guided for deliveries to "comfortably exceed 500,000 units." Sales are expected to be fueled by more growth in Model 3 sales and an early launch of Tesla's Model Y SUV.