The stock price of Tesla Motors Inc (NASDAQ:TSLA) climbed more than 5% to $260.88 per share at the time of this writing around 1:55 P.M in New York today. The positive movement of the stock was driven by an upgrade from analysts at Deutsche Bank.

Deustche Bank analyst, Roche Lache and his colleagues Patrick Nolan and Mike Levin upgraded their stock rating for the shares of Tesla Motors Inc (NASDAQ:TSLA) to Buy with a price target of $310 per share. The analysts previously had a Hold rating with a $220 price target for the stock.

The analysts believed that Tesla Motors Inc (NASDAQ:TSLA) has the ability to deliver a strong growth, and noted that their previous estimate for the electric car manufacturer was too low. Lache and his fellow analysts indicated that they raised their rating and price target for the stock based on the latest statement of Tesla’s management.

In a note to investors, the analysts wrote, “Tesla suggested that their growth trajectory will be much steeper, their mix will be much richer and their costs will ultimately be much lower than we previously assumed.”

In addition, the analysts forecasted that Tesla Motors Inc (NASDAQ:TSLA) will be able to deliver 60,000 electric vehicles in 2015 and 100,000 units the following year, an increase of 18% and 67%, respectively.

Tesla Motors Inc (NASDAQ:TSLA) is aiming to increase its annual production capacity to 50,000 units by the end this year. By the end of2015r, the electric car manufacturer wants to double its production capacity to 100,000 units.

Tesla Motors Inc (NASDAQ:TSLA) is also targeting to reduce the cost of its battery packs to $150 per kWh by the end of 2017. At present, the price of the battery pack is around $250 per kWh.

According to the analysts, Tesla Motors Inc (NASDAQ:TSLA) will have an “outright advantage” in the electric auto industry if it will succeed in reducing the cost its battery packs to its target price. They learned from industry experts that such improvement requires “significant advancements in cathode, anode and electrolyte technology.”