Shares of Tesla are up 3.2% at $246.08 a share as of 10:37 a.m. ET after receiving an upgrade at Morgan Stanley. Adam Jonas, lead auto analyst for Morgan Stanley, published a research note on the company on Thursday in which he raised his target price to $305 from $242 and placed and "overweight" or buy rating on the stock.Jonas cited four major factors in his upgrade: a successful 2017 launch of the $35,000 Model 3, with better volume production arriving in 2018; the emergence of electric vehicles as a "core trend" for big carmakers, with EVs reaching 23% of the market in 2030; the disappearance of high-tech competitors with plans to build actual cars; and a pro-US manufacturing policy set to arrive from the Trump administration.The upgrade follows a recent announcement from Tesla that it will invest $350 million and hire 500 workers to ramp up production of drivetrains for its forthcoming Model 3 mass-market vehicle, which will be priced at $35,000.Thursday's gains have Tesla trading at its best level since the end of April and about $40 below its all-time high set in the middle of 2015.Fourth-quarter and full-year 2016 earnings for Tesla are set to be announced in February. Visit Markets Insider for constantly updated market quotes for individual stocks, ETFs, indices, commodities and currencies traded around the world. Go Now!