UPDATE: Deutsche Bank Upgrades Tesla Motors to Buy on Very Positive Outlook

In a report published Friday, Deutsche Bank analyst Dan Galves upgraded the rating on Tesla Motors (NASDAQ: TSLA) from Hold to Buy, and raised the price target from $50.00 to $160.00.

In the report, Deutsche Bank noted, “In our ‘Electric Cars: Plugged In' report published in 2008, we wrote that inherent advantages of pure Electric Veh's had the potential to drive a paradigm shift in the industry, once key driving range and battery cost disadvantages closed over time. TSLA appears well on its way to proving this, evidenced by several unbiased third parties concluding that TSLA's first mass-produced vehicle is the best car they've ever tested. TSLA has already largely eliminated the range issue; and we now believe that Gen3 can fully close the cost gap while generating 25% gross margins. We believe that Tesla could still more than double inside of 3-4 years and are upgrading to Buy from Hold.”

Tesla Motors closed on Thursday at $124.07.