TSLA stock restarted its rally this morning after leading analysts on Wall Street boosted their price targets for the company. In addition to that, Tesla Inc (NASDAQ:TSLA) also started delivering its Model 3 sedans, which were manufactured in China, after the vehicles had been suspended for a while following the coronavirus scare.

Price Target Raised to $1,200

Adam Jonas of Morgan Stanley noted that the possibility of Tesla becoming a supplier of batteries to electric vehicle manufacturers could also become a game-changer for the company.

Jonas raised his price target for TSLA stock from $650 a share to $1,200 a share. That presents an upside of close to 50% for TSLA stock, which closed at just more than $800 a share this past Friday. If the stock does touch those levels, then Tesla will have a market capitalization of as much as $220 billion.

At the time of writing, TSLA stock is up by 5.73% to $845.90.

Jonas also raised his base case target for Tesla shares from $360 a share to $500 a share. The possibility of Tesla becoming a major player in the electric vehicle battery market has been touted as the major reason behind the bullish outlook.

Toni Sacconaghi of Sanford C. Bernstein upped his price target for TSLA stock as well. He raised it from $325 a share to $730 a share. He stated that although it may be tough to justify the current levels of the stock, there is now widespread belief among many that the company could be a sustainable and consistently profitable business.

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He added that the demand for the Model 3 has remained impressive, and the gross margins have improved as well. He also pointed out that in 20 years, the size of the total addressable market for the company could rise 30 fold, so the possibilities could be endless for Tesla.

TSLA stock is the biggest gainer of 2020, with a jump of 95% so far this year.

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