Tesla ( TSLA , Financial ) shares rose 5% on Wednesday following a price target increase from Barclays. Analyst Dan Levy boosted the target to $325 from $270 and kept an Equal-weight rating.

Levy said that Tesla's stock momentum has not previously moved with the fundamentals. According to him, the spike is attributed to market excitement surrounding autonomous vehicles (AV), artificial intelligence (AI) and their total addressable market (TAM). Although the recent U.S. elections shouldn't be good for the electric vehicle (EV) sector, Tesla has been quite resilient.

Investor sentiment is being driven by the Elon Premium', a registered source for the outsized influence CEO Elon Musk is assumed to hold over the company's valuation. Levy said Tesla's investment dynamics had the same level of speculative appeal as Bitcoin.

The analyst also said that over time, fundamentals may come back into Tesla's valuation, but for now, no perceivable negative catalyst could seriously dent the stock once it hits elevated levels. This is because investors remain bullish on Tesla's position as the leader of future technologies outside of EVs.

Meanwhile, attention remains riveted on the stock performance of Tesla, as a result of broader arguments about technological innovation and Musk's constant presence. But with no immediate headwinds ahead, the company is a focal point for speculative and growth related investors.

This article first appeared on GuruFocus .