Tesla Stock: Headed to $540 on Recurring Software Revenue?

Shares of Tesla (NASDAQ: TSLA) rose sharply again on Wednesday, following a run-up on Tuesday fueled by news of the electric-car maker stock's planned inclusion in the S&P 500 index. Driving the stock price higher this time was a huge price target hike by Morgan Stanley analyst Adam Jonas.

The growth stock could benefit in the coming years from a business model shift toward higher-margin software and vehicle services revenue, the analyst says.

Here's a closer look at why Jonas is so bullish on Tesla stock.

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Source Fool.com