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Argus Research has raised its target price for Tesla (NASDAQ: TSLA) to $1,010. The analyst believes the company is the "undisputed leader" of electric vehicle manufacturers, and has a significant lead over its competitors. Political changes in the United States will become a tailwind for Tesla, and development in the Chinese market promises great opportunities.

Bill Selesky of Argus Research wrote in a note to customers that he is raising the target price for Tesla EV maker shares by 30% to $1,010 from $777 and reiterated his Buy rating. The analyst expects the share of electric vehicles in the automotive market to continue to grow and account for an increasing proportion of sales, as the lower cost of producing batteries makes them more affordable for the average car buyer. He believes Tesla is the undisputed leader in electric vehicles, and the company's figures will continue to grow.

In addition, Argus Research believes that Tesla is well-positioned to expand into the Chinese market, which is the world's largest market for electric vehicles and cars in general.

"We also believe that Tesla is well positioned to expand in the Chinese market."

Selesky also stressed that the Biden administration will give a positive impetus to Tesla's further development. As a part of the new government programs, rebates and new tax incentives will be offered to stimulate consumers to purchase EVs, which, according to Argus Research, will give preference to Tesla cars.

"[We] believe that the incoming Biden Administration will offer rebates and new tax incentives to encourage consumers to buy EVs, which we think favors Tesla versus all the rest."

Argus Research's price target is currently the second-highest on Wall Street. The first, the most optimistic price for Tesla is $1,036 from Oppenheimer's Colin Rusch.

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