(Updated - February 1, 2021 6:41 AM EST)

Piper Sandler analyst Alexander Potter raised the price target on Tesla (NASDAQ: TSLA) to a 'Street High' $1,200.00 (from $515.00) while maintaining an Overweight rating.

Potter said while 2020 was a breakout year for TSLA, they believe "the fireworks aren't over."

Despite a 10x return over the past 12 months, they don't think investors should be selling this stock.

"To defend our new price target of $1,200, we are publishing a 100+ page report entitled The Definitive Guide to Investing in Tesla," Potter commented. "While it is more exhaustive than anything we have published to date, even our expanded model does not capture all potential revenue streams. Indeed, with Tesla's target industries still embracing outdated business models, it may be decades before this company runs out of new opportunities to pursue."

The analyst highlights:

• Tesla is now part of the S&P500; investors who use this benchmark should be Overweight TSLA.
• Our new outlook gives TSLA more credit for sustained success. Our forecast implies 894k vehicle deliveries in 2021, eventually ramping to 9M+ units in 2030
• Tesla is targeting multi-trillion dollar markets; there will always be new levers for growth. Some may scoff at our generous assumptions re: TSLA's long-term potential, but consider this: our model does not contemplate Tesla's eventual entry into the HVAC or auto insurance markets, both of which represent hundreds of billions in market-wide revenue. Our forecast of peak vehicle production (9M units/year) is also materially below Tesla's own ambitions, based on capacity plans outlined at Battery Day. Plus we could be under-modeling Tesla's solar revenue, as well as "Autobidder" and other opportunities in the Energy segment (these businesses are still nascent).