Electric vehicle juggernaut Tesla still has untapped growth potential and upside for its stock, according to Bank of America. Analyst John Murphy raised his price target on Tesla to $1,200 per share from $1,000 per share. He also hiked his targets for Lucid Group and Fisker , saying Wednesday in a note to clients that the strong investor appetite for electric vehicle stocks should help these companies cheaply expand production. "It is debatable whether any of the start-up EV automakers will ultimately be dominant over the long run, especially in a very competitive industry where the traditional automakers are also ramping up EV efforts. However, if a large global footprint can be built with no-cost capital, the 'growth' story will likely continue to carry the day for the stocks," Murphy wrote. Bank of America's new target is 17% above where Tesla's stock closed Tuesday. Shares of the automaker have already gained 45% year to date. Tesla is well ahead of other start-up automakers, and the company's market value means that it could fund a truly massive expansion with more stock sales to offset any dilution, Bank of America said. "On our revised price objectives, our analysis suggests that a 10% dilutive equity raise for TSLA could fund 40+ incremental plants and 10mm+ units of capacity, which would make TSLA effectively the largest global automaker," the note said. Tesla has sold additional shares in recent years to raise cash as its stock has rocketed higher in recent years. However, the stock has dipped this week after Musk indicated that he would sell some of his personal shares , possibly to pay taxes. Bank of America raised its price target on Lucid Group to $60 per share from $30 per share, and on Fisker to $24 per share from $18 per share. The new targets imply 34% upside for Lucid and more than 20% for Fisker, based on Tuesday's closing prices. —CNBC's Michael Bloom contributed to this report.
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Electric vehicle juggernaut Tesla still has untapped growth potential and upside for its stock, according to Bank of America.