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The rise in Tesla (NASDAQ: TSLA) stock prices in 2020 has been impressive, however, according to an analyst at Fairlead Strategies, it is not yet over. Katie Stockton believes Tesla's parabolic rally in 2020 will continue, and shares could surge to a target of $716.

Tesla's shares are priced at over $600 each, which equates a market capitalization of around $600 billion. Since the beginning of the year, the stock has soared about 670% as the company demonstrates strong development, and investors are ready to buy the stock at a high price, believing in the continued growth in the coming years.

Stockton wrote in a note to customers on Wednesday that a recovery in momentum stocks over the past few weeks bodes well for further gains in Tesla stock. Tesla, which is the largest holding in the MTUM ETF, stands to benefit from a continued uptrend in momentum stocks. Stockton said that the ETF has broken out to new all-time-highs after lagging the broader market for most of October and November, according to the note.

In addition, relative strength has turned back in favor for the momentum ETF, making higher lows within its gradual long-term uptrend relative to the S&P 500, Stockton said.

"The ratio [momentum stocks relative to S&P 500] has room to resistance, supporting additional near-term outperformance by MTUM's holdings, the largest of which is Tesla," Stockton explained. A break to new highs in the MTUM ETF should provide positive momentum for Tesla with a target of $716 from the breakout.

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