If you're looking for an investment in the auto industry, Tesla (NASDAQ:TSLA) is a "must-own stock," according to Piper Jaffray.

The investment bank boosted its target price for Tesla's shares from $372 to $423 on Tuesday. Analyst Alexander Potter believes that the electric-vehicle maker's new Cybertruck could be a key growth driver in the coming years.

Tesla's Cybertruck

Piper Jaffray thinks Tesla's new Cybertruck will be a big hit. Image source: Tesla.

"First things first: Tesla's Cybertruck is awesome," Potter said.

After initially doubting that Tesla could effectively penetrate "the auto industry's most impenetrable segment," Potter now expects Tesla's new electric truck to be a top seller among pickup trucks.

"The more we looked, the more we began considering the possibility that all other pickup trucks might actually be pretty crummy, and that Tesla's Cybertruck is the only pickup worth ordering," Potter said.

In turn, Potter estimates that Tesla could conceivably sell 200,000 Cybertrucks annually in the U.S. by 2023.

Additionally, Potter predicts that Tesla's share of the U.S. luxury sedan and luxury sport utility vehicle markets will rise to 21.5% and 20.5%, respectively. Potter also forecasts that the automaker's vehicles will eventually account for 9% of luxury sedan sales and 12.5% of luxury SUV purchases in China.

Piper Jaffray's new price target for Tesla's stock reflects these possibilities.