Tesla cars are delivered to a showroom in Brooklyn on April 25, 2019 in New York City.

Jefferies sees stock climbing more than 18% in the next year due to prospects for longer-term profitability. The firm raised its price target on the electric automaker on Monday to $400 a share from $300 a share.

Tesla shares rose 2.4% in trading to close at $345.09. Jefferies, which has a buy rating on the stock, now ranks as one of the highest Wall Street price targets on Tesla.