Shares of Tesla Inc. TSLA, +4.42% shot up 5.2% toward a record high in premarket trading Wednesday, after Wedbush analyst Dan Ives boosted his price target by nearly 50%, saying he expects delivery guidance will likely be strong on China demand. Separately, Bloomberg reported, citing people familiar with the matter, that Tesla has settled with Michigan over a lawsuit challenging a state ban on direct-to-consumer, which clears the way for the company to operate service centers in the state. Wedbush's Ives reiterated the neutral rating he's had on Tesla's stock since April 2019 but raised his price target to $550 from $370. "With the drumroll of Tesla bulls now focused on earnings next week, January 29th after the bell. we believe Musk & Co. will not disappoint as underlying strength in China and Europe demand appear robust based on our analysis," Ives wrote in a note to clients. The stock, which is on track to open well above Tuesday's record close of $547.20, has more than doubled (up 114.1%) over the past three months through Tuesday, while the S&P 500 SPX, -1.11% has gained 10.8%.