shares of tesla inc kept their rally going friday toward an eightmonth high after jefferies analyst philippe houchois raised his price target and earnings estimates saying concerns over demand in the electric vehicle leader’s key china market have now been put to rest and regarding worries about the negative effects of the global semiconductor shortage on automobile production houchois said tesla is better positioned to deal with the shortage than its peers the stock tsla climbed 20 toward a fifth straight daily gain in midday trading the 63 rise this week would mark the eighth straight weekly gain the longest such stretch since 12week streak ended in february 2020 houchois raised his stock price target to 950 which is 76 above the jan 26 record close of 88309 from 850 as his research and analysis suggests higher capacity ramp and sustained demand he reiterated the buy rating he’s had on tesla since august “for some time the narrative has been legacy original equipment manufacturers closing the gap we see little evidence as tesla continues to challenge at multiple levels” houchois wrote in a note to clients “the final details of q3 also showed china domestic sales of 736k units putting to rest concerns about domestic demand while annualized q3 output yields 530k ie shanghai running at more than full capacity” he added houchois raised his 2021 estimate for adjusted earnings per share to 559 from 512 and for revenue to 5409 billion from 5362 billion which are now well above the factset consensus for eps of 530 and for revenue of 5105 billion he said while tesla hasn’t been immune to supply disruptions it has outperformed its peers in sourcing chips “from discussions with a senior expert in semiconductor sourcing and manufacturing we understand this partly reflects tesla insourcing chip design with an ability to effect rapid redesign and secure more direct souring than peers” houchois wrote what is also helping tesla outproduce its oem peers is the design of its manufacturing facilities which are focused on simplicity and flow houchois said “in a global auto industry plagued by complexity tesla continues to reduce complexity and set new standards for simplicity of design and assembly” he wrote tesla’s stock which is on course for the highest close since feb 9 has run up 227 over the past eight weeks and soared 860 over the past 12 months in comparison the sp 500 index spx has advanced 281 the past year