Morgan Stanley analyst Adam Jonas released an investment research report today that raised Tesla's target share price from $650 to $1,200. Before, Jonas once looked down on Tesla. But with its potential as a major battery supplier for electric cars, Jonas today nearly doubled Tesla's target price to $1,200.

Tesla, by contrast, closed Friday at $800.03. Jonas's $1200 share price means Tesla will be worth $220 billion. Nonetheless, Jonas continued to maintain Tesla's "underweight" rating.

this “radical assumption ” is based primarily on the fact that tesla may win 30% of the global ev market, including the potential for delivery of 4 million vehicles by 2030, plus tesla ’ s supply of powertrains (including batteries and electric motors) to other automakers, according to jonas ’ report.

For reference, Tesla delivered 367500 electric vehicles to customers in 2019, an increase of 50% over 2018.

This year, Tesla's share price has gone through a crazy rally. So far, the stock has risen 91%, mainly due to good performance, short squeeze, and production of Chinese factories. Last week, Tesla also announced that it would issue $767 a share of common stock to raise $2 billion.

Current Wall Street analysts gave Tesla an average target of $489.47, well below the current actual share price of about $800, according to the data. It should be noted that the $1,200 target price is the most optimistic estimate given by Morgan Stanley, with a basic estimate of $500 and the most pessimistic estimate of $220.