Tesla is surging

Tesla shares are trading higher on Wednesday after a new round of bullish sentiment emerged about CEO Elon Musk’s electric car company.

The stock jumped above $US260 at one point, after opening at $US252, an increase of over 2.5%.

Tesla has been moving steadily higher since March, after slipping in late 2014 and early 2015. Shares now have the September 2014 trading peak of $US291 in their sights.

Investor sentiment looks to be driving the surge. Early investor Rob Baron of Baron Capital went on CNBC on Wednesday and expressed optimism that Tesla could be worth $US120 billion in four to five years; it currently has a market cap of $US33 billion.

“I think we’re going to make between 10 and 20 times our money on Tesla,” he said, confessing a true love for the company and its cars.

Morgan Stanley lead auto analyst Adam Jonas also affirmed his Tesla price target of $US280 this week. Jonas is among the Tesla bulls on Wall Street, but his target is lower than Stifel Nicholas’ James Albertine, who is at $US400.

Tesla is predicting that its will deliver 55,000 vehicles in 2015. It will also start delivering its much-anticipated Model X SUV in the third-quarter.

Watch Baron’s CNBC appearance:

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