Shares of Tesla (TSLA) - Get Report were rising nearly 1% in pre-market trading on Wednesday after investment firm Nomura initiated stock coverage on the electric automaker with a "Buy" rating and a $500 price target.

Nomura is projecting an "unprecedented" surge in Tesla's revenue, forecasting growth of $8 billion in 2016 to $58 billion in 2021. "Easily one of the fastest ever by a multibillion-dollar company," the firm noted.

The bullish call is predicated on Tesla's "insurmountable" advantage in vehicle range per dollar, a lack of legitimate competition in the electric automaker space, the success of its recently released Model 3, and the company's ability to generate mid-to-high- 20% gross margins by 2020.

Shares of Tesla have surged over 62% year-to-date. 

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