There's a new top bull on Tesla. Argus Research's Bill Selesky slapped a $444 target on the share price and upgraded Telsa to a buy from a hold.
The price target is by far the most aggressive on Wall Street, according to FactSet. It's also 25 percent higher than Monday's closing price of $355. Tesla is up 57 percent in the last year. The shares rose more than 3 percent Tuesday.
"Our upgrade reflects recent strong orders for the Model 3," Selesky said in a note to investors. The new model is expected to hit the market en masse by the end of this year. Right now the company is getting about 1,800 orders a day for the Model 3. Argus points out that number is "without a lot of advertising or marketing campaigns."
The cost of the Model 3 is expected to be $35,000, well below Tesla's other offerings.
Selesky did note some headwinds. He cautioned that "the Model 3 will boost labor and overhead costs in the near term." But the analyst said those costs will drop going into 2018.
At a July 28 event, Tesla CEO Elon Musk addressed those concerns asking rhetorically "how do we build a huge number of cars?" He answered himself by saying, "frankly we are going to be in production hell, welcome, welcome welcome to production hell, that is going to be where we are going to be for the next six months, maybe longer."
Telsa is vastly outperforming the Nasdaq this year. Shares of the electric car maker are up 67 percent this year versus 18.5 percent for the Nasdaq.
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