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Jefferies analyst Philippe Houchois upgraded Tesla (TSLA) to Buy from Hold with a price target of $850, up from $700.

Looking into 2022, he sees higher global battery electric demand, more battery and assembly capacity coming on stream, a broader and "mix-accretive" model line-up with more Model Ys and the new S, and "still no legacy issue to contend with," all of which given Tesla accelerating earnings leverage, Houchois tells investors.

With competition accelerating Tesla is "no longer the near-only choice for long-range EVs," but he thinks industry growth accommodates new competitors and Tesla, Houchois added. He has raised his 2021-22 U.S. GAAP EBIT estimates 17% on higher gross margin assumptions, he noted.