Goldman Sachs on Wednesday raised its rating on Tesla to buy from neutral and raised its 12-month price target sharply to $780 from $455.
Goldman Sachs said Tesla's battery development is faster than expected, the car's range is improving, people are increasingly bullish on the electric car industry and believe that Tesla will remain dominant even as the industry expands.
The bank also said that Tesla's mix of models will help it maintain its leading position in the electric vehicle market.
In addition, Tesla's margins are expanding, driven by the Model Y, and the company's growing software sales portfolio will also help its margins over time, Goldman Sachs said.
And just yesterday, Micheal Burry, the movie "The Big Short" prototype, tweeted again that he is shorting Tesla after first revealing the move in late September.
Tesla closed down 2.73% on Wednesday. In Thursday's pre-market trading session, Tesla was up more than 3% to trade at $586.5.