Tesla Motors has a "staggering" ability to ramp up production that will enable it to defend its position for several years, the automaker's biggest bull said Tuesday.

After a Tesla factory tour, Stifel Nicolaus auto analyst James Albertine raised his price target for the company to $400 per share, he told CNBC's "Fast Money Halftime Report." That's the automaker's highest Wall Street target.

"My argument is that Tesla's really carved a niche... and the competition is years away," he said. "We think they can defend themselves for the better part of at least two or three years."

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After Albertine released his upgrade Tesla stock jumped over 4 percent: Shares of the company were trading above $281 Tuesday afternoon.

Including Albertine's $400 target, the average price target for Tesla is $259.62, according to data from FactSet.

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—By CNBC's Everett Rosenfeld