(This story is for CNBC PRO subscribers only.) Morgan Stanley just raised its target on Tesla for the second time this month, and the firm's bull case forecast implies a 70% rally ahead for shares of the electric vehicle company. And yet, Morgan Stanley's widely followed auto analyst Adam Jonas maintained his underweight rating on the stock. Morgan Stanley's new base case target is $1,050, up from a prior forecast of $740. It's new bull case scenario sees shares rising to $2,500. The prior bull case target was $2,070. On Tuesday, the stock closed at $1,476 per share. "It's becoming increasingly obvious that Tesla is going to become a very large company, approaching (if not exceeding) Toyota or VW revenues in the next decade and leaving the world's largest luxury OEMs behind," Jonas wrote in a note to clients. "For the first time during our 10 years of coverage we're starting to model this company as a very, very large auto maker," he added. Morgan Stanley's new official price target is based on Tesla selling 3 million units by 2030, generating over $170 billion in revenue along the way. "One year ago, we believed the legacy OEMs would have had a far more advanced strategic position to pressure Tesla market share; however; Tesla has had, in our opinion, much more freedom to expand than we initially thought," Jonas wrote. In the second quarter Tesla delivered about 90,650 vehicles , which exceeded Street estimates, and led to the company posting a profit for the second quarter . It was the Elon Musk-led company's fourth straight quarter of profits, meaning the company is now eligible for inclusion in the S & P 500, although entry is by no means guaranteed . Shares have gained more than 250% this year as the electric vehicle space continues to attract investors. Tesla has been especially popular among retail investors. In the last week, however, the stock has dropped more than 7% as investors sought to lock in gains after the record run. This is the second time Jonas has hiked his target on Tesla this month , but he maintains that a number of risks facing the stock make the risk versus reward an unattractive one. "We would need much more than this (volume, AV revenue), while ignoring a host of near-term risks, to upgrade the stock," he said. Some of these risks include over-dependency on China as well as overestimation of the opportunity for autonomous vehicles. The firm has a bear case target of $375. Shares of Tesla gained 1.53% on Wednesday. - CNBC's Michael Bloom contributed reporting.
