Shares of Tesla have gone gangbusters since the company shocked the world with its first profitable quarter ever last Wednesday.

The stock is up over 50% since last Wednesday.

Anytime a company tells investors that things are better-than-expected, the investors respond positively buy boosting the stock price.

However, the magnitude of Tesla's move suggests there is more to it than just good news.

"The Tesla debate has moved on from questions of viability to measuring the success and sustainable competitive advantage of the business, triggering a dramatic compression of the stock’s implied risk premium," said Morgan Stanley's Adam Jonas in a note to clients today.

In other words, the market has concluded that Tesla is the real thing.

Indeed, this change in expectations has also changed how analysts need to think about valuing the company.

"Our rating, estimates and price target are under review, pending our analysis of changes to the company’s business model, addressable market and the associated risks," said Jonas. "Taking nothing away from the accomplishments of the Tesla team, triangulating the fundamental valuation with the share price is more challenging than for other stocks."