A Tesla logo is pictured during the Brussels Motor Show on January 9, 2020 in Brussels . (Photo by Kenzo TRIBOUILLARD / AFP) (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)

KENZO TRIBOUILLARD | Getty Images

Shares of Tesla are jumping yet again, continuing the stock’s rapid speculative rise this year.

The electric automaker’s stock is up nearly 7% in premarket trading on Wednesday, topping $900 per share.

The catalyst is once again a big call on Wall Street. Piper Sandler hiked Tesla’s price target to $928 per share, the highest target on Wall Street, according to FactSet. The firm said Tesla’s push into new areas of clean energy will drive the stock higher; however, the new target price is below Tesla’s peak earlier this month.

Shares of Tesla have rallied more than 100% this year alone, leaving investors curious about what is driving the stock to these sky high levels. Last month, Tesla reported strong quarterly earnings, that gave investors more confidence about the company’s balance sheet. Tesla’s stock rose 13% in after hours trading following its results. 

Tesla’s rally really got going earlier this month after Argus Research raised its price target to $808 on February 3rd. The shares jumped 19% that day. Then on the following day, billionaire investor Ron Baron said on CNBC that he believes Tesla’s revenue could top $1 trillion in the next decade. The shares jumped 13% on February 4th.

Wednesday’s bullish call from Piper Sandler focused on Tesla’s battery and solar power products business, which currently make up less than 10% of Tesla’s sales. However, the analyst said he sees a similar growth pattern with those products that he has seen with Tesla’s cars.

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Some investors worry that Elon Musk’s car maker might be a bubble-like rally, unmoored from its fundamentals and fueled by short covering and the fear of missing out among investors not holding the stock. 

Despite some bullish calls on the Street, 45% of the 31 analysts that cover Tesla have a sell rating on the stock, according to FactSet. Only 6 analysts that cover Tesla recommend buying the stock. 

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