Tesla (NASDAQ:TSLA) is showing notable relative strength on Monday after Canaccord Genuity analyst Jed Dorsheimer upgraded the stock to Buy and boosted his price target to $1,071, representing a substantial 53% increase from the current price.

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At the core of Dorsheimer’s bullish positioning is his belief that TSLA continues to distance itself from competitors with its state-of-the-art battery development technology while opening up new and emerging revenue streams in the energy storage and solar markets.

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At the moment, electric vehicles (EV) account for the vast majority of Tesla’s income at 86% of the total in FY20. However, Tesla’s ambitions extend beyond the auto industry and Dorsheimer is betting that the company will eventually emerge as a leading energy brand instead of just a popular EV brand.

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There is enough reason to believe in Tesla’s chances. In the fourth quarter, its energy storage deployments grew significantly as battery placements increased by 83% year to year in order to surpass 3 GWh for the first time in a single year.

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This growth was mainly driven by building momentum for Tesla’s Megapack, which is a large-scale battery storage system used by utility companies to store energy that’s generated by solar and wind sources.

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