UPDATE: Pacific Crest Initiates Coverage On Tesla

In a note released Wednesday, Pacific Crest initiated coverage on Tesla Motors TSLA with an Outperform rating and $316 price target.

In the note, Pacific Crest said investors are likely to pay a higher premium for the stock due to healthy demand trends, achievable near-term targets and an underappreciated growth trajectory into 2016.

Shares of Tesla closed Tuesday at $238.49.