Shares of Tesla Inc. /zigman2/quotes/203558040/composite TSLA +3.16% gained 0.7% in premarket trading Thursday, after Wedbush analyst Dan Ives said industry reports are suggesting the electric vehicle maker witnessed in June a robust "snapback of demand" in China for its Model 3 vehicles. Ives said he believes the China growth story is worth at least $400 a share in a bull case for Tesla, as he expects EV penetration to "ramp significantly" over the next 12 to 18 months. He reiterated his neutral rating and "base case" stock price target of $1,250, and his "bull case" target of $2,000. "In a nutshell, the success in China out of the gates is a major achievement for Tesla and if this trajectory continues will be a 'game changer' for its EV penetration story over the next decade," Ives wrote in a note to clients. "The technology innovations around Giga/Fremont remain the key ingredients in Tesla's success on the battery front and we believe the company is getting closer to announcing the million mile battery at its upcoming Battery Day in September." The stock, which fell 1.7% on Wednesday to snap a six-day winning streak, has more than doubled over the past three months (up 138.4%) while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.49% has tacked on 13.6%.