Morgan Stanley analyst Adam Jonas raised his "bull case" for Tesla (TSLA) shares to $500 from $440 while keeping an Equal Weight rating on the name with a $250 price target. Tesla closed Thursday down $2.66 to $330.37.

The analyst's higher bull case reflects the potential success of the Cybertruck and incorporates the "bull case potential" of China. However, Jonas' "base case" forecast of $250 per share remains unchanged, which he notes is fairly square at the midpoint of his $500 bull case and $10 bear case. "To be clear, we are not bullish on Tesla longer term," Jonas tells investors in a research note. He believes that over time, Tesla could be perceived by the market more and more like a traditional auto manufacturer.

The analyst says that while he's prepared for a potential surge in sentiment through the first half of 2020, he questions the sustainability.