4 Reasons Adam Jonas Upgraded Tesla And Lifted His Target To $305

Morgan Stanley's Adam Jonas was once referred to as Wall Street's "Tesla Motors Inc TSLA cheerleader," given his bullish stance on the electric automaker. He downgraded Tesla's stock in mid-2016 to Equal-Weight from Overweight with a price target slashed to $245 from $333.

On Thursday, the analyst became incrementally bullish on Tesla as he upgraded the stock to Overweight with a $305 price target.

Jonas cited four reasons for his upgrade:

• 1) Expectations for a successful 2017 launch of its Model 3 sedan
• 2) The growing trend of electric vehicles as being a "core trend" for automakers
• 3) The improving competitive landscape for Tesla as high-tech competitors are scrapping plans to develop cars
• 4) A pro-U.S. manufacturing policy from the incoming Trump administration.

Jonas previously argued that Tesla plays a leading role in the revolution towards shared mobility and it can create an on-demand, app-based mobility service called "Tesla Mobility."

The analyst revisited Tesla Mobility in his upgrade note and values the initiative alone at $76 per share.

Jonas' upgrade note isn't the only bullish release on Thursday that's helping drive Tesla's stock higher by more than 3 percent. A separate Business Insider report suggested a potential rival to Tesla, Faraday Future, is in "shambles."