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Tesla’s run just beginning: Analyst

Shares of Tesla could more than double within the next three to four years, Dan Galves of Deutsche Bank said Wednesday.

"We feel like the company has a strong advantage in electric vehicles, and that's likely to be sustained over the long-term, so we see a lot of volume growth over the next few years and profitability being very strong," he said.

Shares of Tesla were up nearly 300 percent year to date.

Tesla was expected to release its second-quarter earnings report after the stock market close.

(Watch video: Is Tesla the next Amazon.com?)

On CNBC's "Fast Money," Galves said that he was taking a long-term view on the stock, on which he held a $160 price target.

"Our price target is based on earnings and volumes that aren't likely to come until near the end of the decade, once Tesla brings out its next-generation vehicle, which is a lower-priced vehicle," he added. "We base our valuation target on earnings, and three or four years from now we think that this company can do about $14 of EPS on 200,000 units near the end of the decade."

Galves added that sales of 200,000 automobiles would still only represent a small fraction of the potential market.

(Read more: 'China is screamingly cheap': JPM strategist)

"That's only one-quarter of 1 percent of the global automotive market, so we see a lot of growth past that because Tesla, we think, has brought out a vehicle that takes advantage of the inherent advantages in electric vehicles, and nobody else is doing that right now," he said.

In response to a question about why he had a "buy" rating on Telsa stock, Galves added that he was also bullish on General Motors.

"But I think you have to look at the growth trajectory and profitability in this market," he said. "It's very difficult to find auto companies that can do margins that are above the average, well above the average, and we think that there's a lot of things about Tesla that's going to support that for a long time."

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On Aug. 7, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long puts JCP; Jon Najarian is long AAPL; Jon Najarian is long CIE; Jon Najarian is long POT; Jon Najarian is long PBR; Jon Najarian is long MAR; Jon Najarian is long HUN; Jon Najarian is long HLF; Jon Najarian is long FCS; Enis Tanner is long GS; Enis Tanner is long WMT; Enis Tanner is long TSLA; Enis Tanner is long NUE; Enis Tanner is long T; Enis Tanner is long CF call fly; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long FCX; Pete Najarian is long SBUX; Pete Najarian is long DIS; Pete Najarian is long FB ; Pete Najarian is long BBRY; Pete Najarian is long VLO; Pete Najarian is long NSC; Pete Najarian is long KRE; Pete Najarian is long EMC; Pete Najarian is long BMY; Pete Najarian is long PFE; Pete Najarian is long MRK; Pete Najarian is long LLY; Stephen Weiss is short JCP; Stephen Weiss is short PHM; Stephen Weiss is short UCP; Stephen Weiss is short TMHC; Stephen Weiss is long M; Stephen Weiss is long BAC; Stephen Weiss is long JPM; Stephen Weiss is long SODA.

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