Morgan Stanley has reinstated Elon Musk‘s Tesla Inc. (NASDAQ:TSLA) as its top U.S. auto pick, citing the company’s focus on artificial intelligence and robotics, in a note on Sunday.
What Happened: The endorsement comes despite Tesla’s recent challenges, including a 45% drop in European sales in January and a decline in 2024 annual deliveries. Analyst Adam Jonas highlighted the company’s shift from a “pure automotive play” to a diversified focus on AI and robotics.
Jonas reiterated his $430 price target for Tesla, making it one of the highest on Wall Street, implying nearly a 51% upside to the stock’s closing price on Monday. This aligns with CEO Elon Musk’s strategy of pivoting the company towards AI and robotaxis.
In the research note, Jonas stated that the market potential for non-automotive applications of embodied AI is significantly …
