When I first recommended this innovative automaker in November, its stock was trading around $31. Over the past seven months, it has soared past my initial price target, potentially rewarding investors with more than 70% returns.

Now, shares of Tesla Motors (Nasdaq: TSLA) are trading near an all-time high, with no sign of slowing down.#-ad_banner-#

The electric-car company has already won the attention of auto enthusiasts. With its sleek design, Tesla’s flagship Model S luxury car was named Motor Trend’s 2013 Car of the Year — an award given for outstanding design and performance capabilities.

In a February report to shareholders, Tesla said it expected to sell 4,500 Model S cars. In April, management said sales beat that estimate with 4,750 units sold. As a result, the company raised guidance for its first-quarter earnings report, due May 8.

According to CEO Elon Musk, Tesla should be on target to sell at least 20,000 Model S’s in 2013, but with continued increases in demand, sales may well exceed 30,000 this year.

International demand could also help spur growth. This June, Tesla will be delivering the Model S in Europe. Asian deliveries are expected to follow in the fourth quarter.

At home, stronger emphasis on environmentally friendly transportation solutions should also drive sales. For example, Tesla’s home state, California, has mandated that by 2018, automakers must sell greater quantities of zero-emission vehicles.

In the meantime, to make luxury electric vehicles more appealing to the general public, Tesla is focusing on offering exceptional service. For example, it now offers a “no fault” warranty on its Model S sedan batteries.

The company is also hinting at the possibility of creating batteries that can run for 500 miles without charging. Currently, the top Model S battery has a range of up to 300 miles.

Given that Tesla is emerging as a world-class brand and considering its dominance in a market with no other true competitors, Longboard Asset Management firm believes Tesla’s stock could become the next Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG). Longboard projects shares could surge to $100 within the next 18 months and to the $200 range by 2018.

Projections aside, the technical picture certainly looks promising. Shares are already up about 60% this year, with more upside potential.

This week, the stock hit an all-time high above $58. At present, shares are trading just under this high, offering a potentially profitable entry point.

For nearly the past two years, shares were stuck in a range between support around $21.50 and resistance around $40. This trading activity created a holding or consolidation pattern known as a rectangle. However, in early April, shares jumped above $40 resistance, bullishly breaking the consolidation pattern. Typically, rectangles resolve in the direction they are first broken.

Sure enough, since moving above $40 resistance, shares have shot up quickly, forming a steep accelerated uptrend line. In less than five weeks, the stock has climbed about 35%.

According to the measuring principle for a rectangle, calculated by adding the height of the pattern to the breakout level, the stock could reach a new high of $58.50 ($40 – $21.50 = $18.50; $18.50 + $40 = $58.50). At current levels, this target represents an 8% return. However, with no overhead resistance in sight, shares could soar much higher.

The bullish technical outlook is supported by phenomenal fundamentals. In its upcoming first-quarter earnings report, Tesla is expected to book its first quarterly profit ever.

Based on increased demand, analysts expect first-quarter revenue will soar an incredible 1,530% — yes, 1,530%! — to $492 million, compared with $30.2 million in the same quarter a year ago. Analysts expect revenue in 2013 to increase an outstanding 363.5% to $1.9 billion from $413.3 million last year.

The earnings picture is equally bright. In the upcoming first-quarter report, analysts expect earnings will swing from a loss of 76 cents a share to a profit of 4 cents a share. For the full 2013 year, analysts project earnings will reach 13 cents a share, compared with a loss of $3.20 a share last year.

Risks to Consider: Some of the stock’s recent momentum is likely based on the very optimistic earnings outlook. If earnings come in below expectations, this stock — which remains somewhat speculative — may fall as quickly as it has soared. However, if earnings surpass expectations, the stock will likely continue to rocket ahead.

Action to Take –> Buy TSLA at the market price. Set stop-loss at $39.93, slightly below current support. Set initial price target at $67 for a potential 24% gain by early fall.

This article originally appeared on ProfitableTrading.com:
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P.S. — Electric vehicles aren’t the only transformative force in the automotive industry. Another disruptive energy technology will bring about major changes in the industry and our country as a whole — and one company is leading the charge. To learn more about this opportunity, click here.