Morgan Stanley: Tesla Can Shatter Records If This Happens

Tesla Motors Inc TSLA shares were up more than 3 percent on Thursday, a move that comes on the heels of upbeat commentary from Morgan Stanley's Adam Jonas.

Jonas, who holds an Overweight rating and a $280 price target on the stock, said a "buying opportunity" exists for investors. "Who would you rather give $1.5 billion to invest in 2015: Elon Musk or your average auto company?" he asked.

"The answer is clear," Jonas continued, "If the Model X launches in August and does the things we think it can do, we believe this stock can set new highs by year end."

Tesla's current all-time high is $291.42, which the stock hit in early September 2014.

Related Link: 3 Ways Apple And Tesla Are Actually Alike

Jonas also addressed the company's capital expenditures, which were discussed heavily in its latest earnings call. "As a proportion of revenues, Tesla will spend 10x as much as Ford on capex in 2015," he wrote, before adding, "Given the opportunity Tesla has to burrow into an auto industry ripe for change, we are comfortable with the firm's spending ambitions."

Jonas reiterated the "choice" auto investors have: "Invest in cash-rich traditional auto companies at low valuations doing BMW-style margins...or invest in the company we believe has the best opportunity to change the industry fundamentally despite burning cash and having no near term valuation support."

Shares of Tesla closed Thursday at $211.70, up 3.5 percent.