As shares of electric car maker Tesla Inc. (TSLA) surge 44.5% year-to-date (YTD) versus the S&P 500’s 15.3% gain over the same period, one team of bulls on the Street expects shares to rally another 62% to $500. TSLA closed down 2% on Monday at $308.74.

Nomura Instinet analyst Romit Shah, Wall Street’s most optimistic Tesla fan, expects revenues to grow to $60 billion by early in the next decade. The analyst based his forecast on demand for the company’s first mass-market vehicle, the Model 3 sedan, and the car's ability to add billions to the Palo Alto, Calif.-based automaker’s top line in just a few years. (See also: Tesla’s Model 3 Is the ‘iPhone of EVs’: Instinet.)

'No Real Competition'

“We think there is Model 3 demand in excess of 500,000 units per year, and they can get there by the end of the decade,” said Shah in a recent interview with CNBC. “And if they are, you are talking about $25 billion plus in revenue and billions of dollars of cash flow that will" take care of some of these issues around funding, and capacity, he continued. By the end of this year, Tesla is expected to have burned through an estimated $10.6 billion since its initial public offering (IPO) in 2010.

While Tesla now loses money on every car it sells, Shah attributes this to the company’s transition from “subscale” to “superscale,” which he believes will take some time. While “there is no doubt that there is an operational piece that needs to get figured out,” the analyst sees no real competition for Tesla. He indicates that if the company can achieve its production target of 5,000 vehicles per week by March of next year, volumes will scale and cash flows will follow. (See also: Walmart to Test Tesla Trucks, In a Couple Years.)

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