Tesla Takes Off on Jefferies Upgrade

NEW YORK ( TheStreet) -- Tesla ( TSLA) shares jumped 7.57% in afternoon trading Monday after analysts at Jefferies gave the stock a ratings boost.

Shares briefly hit a high of $116.20 in early trading before sliding back to $115.40.

Jefferies analyst Elaine Kwei raised her estimates on the stock based on higher-than-expected Model S deliveries.

"We believe there is likely upside to prior 2Q guidance for deliveries of 4,500 units, as well as 2013 guidance of 21,000 units," she said in a report.

Kwei generously boosted the price target to $130 from the previous $70, based on a 10-year discounted cash flow. She estimated that the innovative automobile company has consumed about 9% of the market share in the U.S. full-sized luxury sedan market.

The leap will add to Tesla's impressive run this year, as the stock has risen just over 240% year to date.

Kwei maintained a "buy" rating on the stock of the Palo Alto, Calif-based company, which will release earnings on July 22.

-- Written by David Webster in New York

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