Tesla Inc CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020.

"We are raising our 2020 EPS estimate to $5.96 from $4.40 to reflect improved economies of scale in 2020 production and delivery results and a better-than-expected ramp up of vehicles produced at the Shanghai factory in China," Selesky said in a note to clients.

Selesky cited Tesla's strong fourth quarter deliveries, where it topped analyst expectations , as one reason for the change. The new price target makes him the biggest bull among major analysts tracked by FactSet, and reflects about a 19% upside from where the stock currently trades.

Argus Research analyst Bill Selesky raised his 12-month price target on Tesla to $556 from $396 on Tuesday.

Selesky also said he expects Tesla to see growth in its other segments, like energy generation.

The company started delivering Model 3 cars built at its new Shanghai factory last month. The factory was operational ahead of the company's stated deadline. China is the world's biggest market for electric vehicles.

Shares of Tesla have roughly doubled in the past six months, making the electric vehicle company's market cap similar to that of legacy automakers General Motors and Ford. Those companies are still valued more highly by investors when taking debt into account.

Among all analysts listed on FactSet, a small firm named Elazar Advisors has the highest price target for Tesla at $734 per share.

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