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One research firm has a bold new call for Tesla shares
(REUTERS/Elijah Nouvelage) Japan's Prime Minister Shinzo Abe takes a test drive of a Tesla Model S P85D electric car with Tesla Motors CEO Elon Musk in Palo Alto, California April 30, 2015.
The Wall Street research firm Jefferies has a big new call for Tesla: $350.
In a note to clients on Tuesday, the firm published the results of a recently conducted survey of 700 people that suggest Tesla could sell "at least" 500,000 cars a year by 2020.
Following this survey, Jefferies initiated research coverage on the stock with a "Buy" rating at $350 price target.
According to data from Bloomberg, only Stifel, which has a price target of $400, is projecting more upside for Tesla shares.
In premarket trade Tuesday, Tesla shares were up about 3% to $238 per share.
In its note, Jefferies said 68% of all respondents to its survey were considering alternative-fuel vehicles, with 7% of those considering a Tesla.
The firm said these numbers suggest a 500,000-car-per-year target for Tesla by the end of the decade is "feasible" and would still give Tesla less than 0.5% of the global car market. In 2014, the company delivered 31,655 vehicles.
Concerns about Tesla's poor sales figures in China are also overblown, Jefferies said.
Jefferies adds that its survey indicates there is little excitement from consumers about an electric car from Google or Apple.
The firm also said Tesla's Energy unit gave the company "a distinct competitive advantage."
Last week, Tesla announced its energy unit, which will make batteries to power homes and businesses.
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