Jefferies analyst Philippe Houchois upgraded Tesla (TSLA) to Buy from Hold with a price target of $650, down from $800. The shares closed Friday up $25.54 to $480.01. Despite reducing Tesla's estimates, the analyst still sees 2020 revenue growth of 27%.

The company's earnings and free cash flow will be supported by better productivity, stable average selling prices and income from zero-emission vehicle credits, Houchois tells investors in a research note.

Tesla is the only "legacy-free" carmaker and is participating in "a positive EV sum-game," contends the analyst. Further, post COVID-19 crises, Houchois expects higher consumer support for energy-efficient transport.