Piper Jaffray analyst Alexander Potter raised his price target for Tesla Motors to $386 following last night's Q2 results. In a research note partially titled "Too Many Good Vibes to Consider Bailing Now," Potter says Tesla's operating metrics are improving.

The shares should keep moving higher even though the company is facing its toughest challenge yet with the Model 3 production ramp, Potter writes. It is not wise to "bet against a story with this much momentum," the analyst argues. He reiterates an Overweight rating on Tesla. The stock in premarket trading is up 7%, or $22.30, to $348.19.