Shares of Tesla (NASDAQ:TSLA) jumped on Tuesday morning, rising as much as 6.2%. As of 10:45 a.m. EDT, however, they were up only about 1.5%.
The growth stock's gain was fueled by an analyst's decision to boost his 12-month price target on the shares from $939 to $2,322.
It's not surprising to see Tesla shares rising following this bullish outlook from Piper Sandler analyst Alexander Potter; a $2,322 price target represents a 50% gain over the next 12 months.
To support his optimism, Potter cites Tesla's strong potential to lead in vehicle technology over the next 10 years. The analyst recommends that investors do not sell their shares, despite the stock's monstrous rise over the past 12 months.
Next week, when the electric-car maker reports earnings, investors will get to see whether Tesla is living up to high expectations. Two areas they'll be watching closely are the company's bottom line for the period and management's guidance for full-year vehicle deliveries.