Tesla Inc. shares eclipsed US$1,000 for the first time ever on Wednesday as ramping demand for the company’s Model 3 in China led Wedbush analysts to tout the “massive”’ market opportunity and its ongoing battery efforts.

Analyst Daniel Ives called the demand out of China “a ray of shining light for Tesla in a dark global macro” setting, with the company appearing to be on track to reach 100,000 deliveries from its local plant in the first year. Ives maintained his neutral rating but boosted his price target to US$1,000 from US$800 and said his new bull case implies shares could be worth US$1,500 from US$1,350 previously.

Further demand for electric vehicles in China paired with the easing of lockdowns in both the U.S. and much of Europe and the potential for “game-changing” battery developments at a company event planned for this month signal shares can move higher, Ives wrote.

Shares of the Palo Alto, California-based electric-vehicle maker rallied as much as 6.8 per cent Wednesday to touch a record US$1,005. The shares have nearly quintupled in the past year as its market valued ballooned to US$185 billion.

Tesla’s highly anticipated “Battery Day” will provide the next setting for Chief Executive Officer Elon Musk to announce a number of new potential developments, according to Ives. He believes the company is getting closer to announcing a million-mile battery.

Tesla has 10 buy-equivalent ratings, with 12 analysts recommending to hold the shares and 15 advising clients to sell, according to data compiled by Bloomberg. The average 12-month price target of $641 implies shares are worth more than a third less than Wednesday’s trading.