July 1 (Bloomberg) -- Tesla Motors Inc. surged to a record high after a Jefferies Group LLC analyst almost doubled her price target for the maker of electric cars and increased estimates of its 2013 deliveries.
Tesla gained 9.1 percent to $117.18 in New York, its highest closing price. Shares of the Palo Alto, California-based company more that tripled this year, compared with a 13 percent rise for the Russell 1000 Index.
Elaine Kwei, an analyst for Jefferies, today raised her price target on Tesla to $130 from $70 and increased her estimate of 2013 Tesla production to 21,500 Model S sedans from 19,800. Kwei also boosted her estimate for Tesla’s second-quarter output to 5,000 from 4,500.
“Despite the massive run in the stock, we believe TSLA is one of the best growth stories in the market today and still has upside,” Kwei wrote, referring to Tesla’s ticker symbol. The analyst cited higher Model S sales and better profit margins as among “potential positive catalysts.”
Tesla’s shares have risen this year after the company reported its first profit and it repaid a $465 million U.S. Energy Department loan nine years ahead of schedule.
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