Shares of Tesla Inc. (TSLA) continue their volatile run on Tuesday, jumping on an upbeat note from one team of analysts who initiated coverage on the electric vehicle industry pioneer at outperform, as outlined by CNBC

Tesla stock is trading up nearly 6% on Tuesday afternoon, paring a 14.7% loss year-to-date (YTD), compared to the S&P 500's 7.8% return over the same period.

In a note to clients on Monday after market close, bulls at Macquarie Research forecasted shares of the Palo Alto, Calif.-based auto maker to surge 72% to reach $430 in 12 months. 

(See also: Buy Tesla on ‘Significant Barrier for Competition’: Baird.)

Product Differentiation, Disruptive Potential Make TSLA Attractive Tech Investment

Macquarie analyst Maynard Um views Tesla as a disruptive technology growth company "with differentiated products and strong brand presence in the secularly growing and equally disruptive markets of electric vehicles, energy storage, and energy generation."

The analyst expects a handful of positive growth drivers to help Tesla reach its production targets and turn a profit for the first time by the second half of 2018. His upbeat forecast was driven by factors including Tesla's accelerating vehicle unit growth, its unique potential among original equipment manufacturing, its expansion into energy storage market, its leadership position in the autonomous driving space and software integration for the next-gen of electric vehicles. 

As for Tesla's need to raise more cash, Macquarie suggested that an equity raise would be beneficial to strengthen its long-term outlook and "provide a cushion in case of any unexpected periods of economic softening." (For more, see also: A Bad Week For Tesla Just Got Worse.)

Macquarie's bullish note comes as Tesla continues to get beaten down on the Street regarding the actions of its founder and Chief Executive Officer (CEO) Elon Musk, who recently settled a lawsuit with the Securities and Exchange Commissions (SEC) regarding a series of tweets from his account earlier this year. While Um admitted that "Musk's actions and behavior could adversely impact Tesla's multiple," he added that the CEO "will continue to be a key part of Tesla in the foreseeable future."