Elon Musk, co-founder and chief executive officer of Tesla Motors.

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Credit Suisse significantly raised its price target for Tesla shares on Tuesday, but the firm’s new expectation still represents a nearly 25% stock drop for Elon Musk’s company from the current levels.

The firm increased its price target on Tesla to $340 a share from $200 a share, while maintaining its underperform rating on Tesla.

The move comes after Tesla’s stock surged about 90% in the last three months, climbing in December past the memorable $420 a share level. Additionally, Tesla on Tuesday began delivering Model 3 cars made at its Shanghai factory, tapping into China, the world’s second largest economy.

Analyst Dan Levy further explained the firm’s revised target, saying why it “gives credit to Tesla in multiple ways, yet is still well below Tesla’s current stock price.”

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