Shares of Tesla Inc. TSLA+1.2% are up 2.4% in morning trading Thursday after Jefferies analyst Philippe Houchois boosted his price target to $1,200 from $650 while maintaining a buy rating. "Against expectations even a few months back, the gap with peers is widening, from product to battery tech/capacity," Houchois wrote in a note titled "There is Logic in the Exuberance." He argued that the company's business model continues to test legacy car companies as the direct-selling model is getting the attention of traditional car makers. He also said that the COVID-19 crisis has helped accelerate the transition to electric vehicles among consumers within the public policy sphere. Tesla shares are up 180% over the past three months as the S&P 500 SPX+0.05% has gained 29%.