Tesla 's lead over other automakers is still strong and its stock has significant upside, according to investment firm Jefferies. Analyst Philippe Houchois hiked his price target on Tesla to $1,400 from $950, saying in a note to clients on Monday that the automaker's recent strength suggested that it would continue to be a major player even as the legacy automakers ramp up their electric car output. "With an acceleration of self-funded growth in Q3 and un-heard-of returns at a brand price point moving towards volume segments, Tesla looks more scaled up today than most OEMs and in position to turn the Legacy zero-sum-game into a negative one," the note said. The firm's price target is 14.6% above where the stock closed Friday and is the highest among major analysts on Wall Street, according to FactSet. The legacy automakers including Ford and GM have announced major overhauls and accelerations of their electric vehicle plays this year, but the pinch to their traditional vehicles from the transition should allow Tesla to continue to grow its foothold, Jefferies said. "We have long resisted the idea Tesla could sell [20 million] units by 2030 (20-25% global share) given the industry's size, strategic importance and political support. We still do, but conviction is weaker considering the accelerating gap in growth and profitability," the note said. The Jefferies note did not mention Elon Musk 's Twitter poll over the weekend where he asked his followers if he should sell some of his stock. Shares of Tesla were sliding in premarket trading Monday . — CNBC's Michael Bloom contributed to this report. Correction: Jefferies' price target on Tesla is 14.6% above where the stock closed Friday. An earlier version misstated the percentage.
