Tesla’s Stock Jumps as Morgan Stanley Names It ‘Top Pick’ in U.S. Autos

Tesla’s stock is on the rise again, with shares climbing after Morgan Stanley named the EV maker its “Top Pick” in the U.S. auto sector. While Tesla’s vehicle deliveries have fallen below expectations this year, the firm remains bullish on its long-term potential—especially as it expands into artificial intelligence (AI) and robotics.

Tesla’s Evolution Beyond Automobiles

According to Morgan Stanley analyst Adam Jonas, Tesla is no longer just a car company. Instead, he sees it as a “highly diversified play on AI and robotics”, a shift that could redefine its future. The company’s self-driving technology and AI-driven innovations, like Optimus (Tesla’s humanoid robot project), position it as a leader in the growing field of “embodied AI”—where AI moves beyond digital applications and into physical products.

Morgan Stanley believes this transformation will help Tesla expand its Technology Acceptance Model (TAM) into new industries, solidifying its dominance beyond EVs.

Big Upside for Tesla Stock?

Jonas maintains an “overweight” rating on Tesla, forecasting a more than 50% upside to Morgan Stanley’s $430 price target. In a best-case scenario, he says Tesla’s stock could hit $800.

However, there’s a twist—Jonas acknowledges that Tesla’s 2025 deliveries could decline. If that happens, he suggests it could create an “attractive entry point” for investors looking to buy in before Tesla’s AI and robotics ambitions fully materialize.

What’s Next for Tesla?

Tesla’s stock has already surged nearly 50% over the past year, and with Wall Street increasingly viewing it as an AI and robotics leader, investor interest could keep growing. While short-term EV sales may fluctuate, Tesla’s broader vision—spanning AI, autonomous driving, and robotics—could drive its long-term success.

Will Tesla continue to redefine its role in the market? If Morgan Stanley is right, the best could be yet to come.