Jefferies: Tesla Worth $360/Share On Ecosystem, $1 Trillion Market Opportunity & International Success

In a report published Friday, Jefferies analyst Dan Dolev reiterated a Buy rating and price target of $360 on Tesla Motors Inc (NASDAQ: TSLA), based on signs of success in the difficult EV markets, exaggerated concerns over cash flow, $1 trillion market opportunity for Tesla Energy and the company's "underappreciated" ecosystem.

"Model X deliveries in 3Q could be symbolic, but strong pent-up demand (2-3x Model S pre-launch) and a quick 4Q production ramp-up are far more important for Tesla's future, in our view," Dolev stated.

In addition, there have been signs of improvement in the China markets, following the implementation of Tesla Motors' new strategy, while the company's recent success in Germany "proves that Tesla can flourish even without subsidies," according to the Jefferies report.

The analyst expects Tesla Motors' operating cash flow to turn positive in Q4, while capex is not expected to rise in 2016. The analyst believes that the company's unique ecosystem needs to be better reflected in its stock valuation.

"Tesla views the Gigafactory as a product by itself, with a long-term vision to replicate it many times over," Dolev added.