Credit Suisse: Tesla Stock Has 'Substantially' More Upside, Could Hit $400 By Next Year

In a report published Monday, Credit Suisse analyst Dan Galves maintained an Outperform rating on

, while raising the price target from $290 to $325. Analyst Dan Galves expects Tesla to deliver 11k-11.5k units in 2Q, ahead of the guidance of 10k-11k. Galves estimates that the volumes achieved by the company in April/May in North America and Europe were almost double of what was recorded in January/February. Even of the June volumes remain flat with March's volumes of around 6,350 units, the company could achieve 12,500. In the report Credit Suisse noted, "We believe overall guidance for 55k units in 2015 includes about 48k for Model S. Achievement of this would represent 52% growth in 3rdfull year of Model S sales, undercut the most prevalent short thesis, and would increase confidence for 100k-150k combined S/X sales over next couple years." The increase in volumes to 13.5k per quarter in 2H15 is expected to be driven by the lower-end Model S70D, which reached US and Europe customers not earlier than mid-May and June, respectively. Tesla has access to a low-cost credit line of $500MM. Even if the company uses $400MM from this credit line, it could exit 2015 with about $1.5bn of cash, "well above the $1.0bn comfort level," Galves wrote, while adding, "While we still think external funding over the next 12 months is likely, we believe strong access to credit markets makes straight debt financing more likely." Tesla's shares have declined significantly after having reached a record high of $282 in September 2014, while the "near-term risks surrounding the auto business have been substantially reduced," the report mentioned. Moreover, Tesla Energy has the potential to add 15-35 percent to late-decade auto revenues, which could take "valuations as high as ~$400" over the next 12-18 months, Galves pointed out.