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.
Video: Kawasaki's $55,000 Ninja H2R Is the Baddest, Meanest Motorcycle
Don't miss these top stories on TheStreet:
- Ford's Stock Will Probably Skyrocket After Revealing Some Mind-Blowing Cost Cuts
- Google Pixel 2 a 'Major Disappointment'
- Uber's Board Reduces Kalanick's Clout, Backs SoftBank Investment
- A History of the Ford F-Series in 90 Seconds
- iPhone 8 and Galaxy Note 8 Are Both Fragile, But One Is Much Easier to Break
- The Ford $100,000 F-450: 'The Most Luxurious, Advanced Heavy-Duty Pickup Truck'