diff --git a/__tests__/SetupStore-test.js b/__tests__/SetupStore-test.js
index 8b5052e699..1410a883b0 100644
--- a/__tests__/SetupStore-test.js
+++ b/__tests__/SetupStore-test.js
@@ -73,7 +73,7 @@ describe('SetupStore', function () {
 
     pit('upgrades the vm if it exists and is out of date', function () {
       machine.exists.mockReturnValue(Promise.resolve(true));
-      machine.state.mockReturnValue(Promise.resolve('Running'));
+      machine.state.mockReturnValue(Promise.resolve('Stopped'));
       machine.isoversion.mockReturnValue('1.0');
       machine.stop.mockReturnValue(Promise.resolve());
       machine.start.mockReturnValue(Promise.resolve());
@@ -88,9 +88,9 @@ describe('SetupStore', function () {
       return setupStore.steps().init.run(() => {}).then(() => {
         expect(machine.create).not.toBeCalled();
         expect(machine.stop).toBeCalled();
+        expect(machine.upgrade).toBeCalled();
         expect(machine.regenerateCerts).toBeCalled();
         expect(machine.start).toBeCalled();
-        expect(machine.upgrade).toBeCalled();
       });
     });
   });
diff --git a/src/SetupStore.js b/src/SetupStore.js
index b91770fff9..8adec813fe 100644
--- a/src/SetupStore.js
+++ b/src/SetupStore.js
@@ -75,8 +75,6 @@ var _steps = [{
         yield machine.create();
       }
       return;
-    } else if (exists && (yield machine.state()) === 'Saved') {
-      yield virtualBox.wake(machine.name());
     }
 
     var isoversion = machine.isoversion();
@@ -86,7 +84,10 @@ var _steps = [{
       yield machine.upgrade();
     }
     var state = yield machine.state();
-    if (state !== 'Running') {
+    if (state === 'Saved') {
+      yield virtualBox.wake(machine.name());
+      yield machine.regenerateCerts();
+    } else if (state !== 'Running') {
       yield machine.start();
       yield machine.regenerateCerts();
     }