Morgan Stanley Backs Tesla's AI and Robotics Efforts, Reinstating It as Top U.S. Auto Pick
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Tesla rises 2% as Morgan Stanley backs AI, robotics efforts with 'top pick' status
(Reuters) - Tesla shares rose 2% on Monday after Morgan Stanley reinstated the electric-vehicle maker as its top U.S. auto pick, saying the company's artificial intelligence and robotics efforts could power growth even as the mainstay car business stumbles. The note dated Sunday was the latest
[2]
Tesla rises 2% as Morgan Stanley backs AI, robotics efforts with 'top pick' status
March 3 (Reuters) - Tesla shares rose 2% on Monday after Morgan Stanley reinstated the electric-vehicle maker as its top U.S. auto pick, saying the company's artificial intelligence and robotics efforts could power growth even as the mainstay car business stumbles. The note dated Sunday was the
[3]
Tesla shares rise 2% as Morgan Stanley backs AI, robotics efforts with 'top pick' status
Tesla shares rose by 2% after Morgan Stanley reinstated it as its top U.S. auto pick, citing AI and robotics efforts despite a 45% drop in European sales. Analyst Adam Jonas reaffirmed a $430 price target, noting the company's shift from an automotive focus to AI and robotics, echoing CEO Elon
[4]
Top Analyst Forecasts Over 50% Surge in Tesla Stock Amid AI & Robotics Push: 'Humanoid Robot Serious Enough To Move The Stock' - Tesla (NASDAQ:TSLA)
Morgan Stanley has reinstated Elon Musk's Tesla Inc. 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
[5]
Morgan Stanley's Jonas names struggling Tesla a top pick, sees nearly 50% comeback
Tesla shares can make a major recovery after a rough start to the year, boosted by its AI and robotics ambitions, according to Morgan Stanley. Analyst Adam Jonas named Tesla his new top pick in U.S. autos, highlighting the embattled electric vehicle maker's opportunity in autonomy and robotics as
[6]
Morgan Stanley reinstates Tesla as 'Top Pick' with nearly 50% upside to its target By Investing.com
Investing.com -- Morgan Stanley (NYSE:MS) has reinstated Tesla (NASDAQ:TSLA) stock as its 'Top Pick' in U.S. autos, with its price target of $430 implying more than 50% upside from the company's current share price. With Tesla shares down nearly 30% year-to-date, the Wall Street firm sees this as
[7]
Tesla Stock Gains as Morgan Stanley Calls EV Maker Its 'Top Pick' for US Autos
Analyst Adam Jonas explained Tesla's falling sales were a sign the company is shifting from simply being a car company to also a technology provider. Tesla (TSLA) shares charged higher Monday after Morgan Stanley made the electric vehicle (EV) maker its "Top Pick" in the U.S. automobile sector as
[8]
Tesla: Can AI Ambitions Make $430 Target a Real Possibility? | Investing.com UK
Tesla (NASDAQ:TSLA) has recently garnered significant attention in the financial markets following a favorable analysis by Morgan Stanley. The company's stock saw a modest increase of 2% after analyst Adam Jonas projected a potential rise to $430 per share. This optimistic forecast is attributed
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Tesla shares rise 2% as Morgan Stanley analyst Adam Jonas reinstates the company as top U.S. auto pick, citing its pivot to AI and robotics despite recent sales challenges.
Morgan Stanley Reinstates Tesla as Top U.S. Auto Pick
Morgan Stanley analyst Adam Jonas has reinstated Tesla as the top U.S. auto pick, citing the company's artificial intelligence (AI) and robotics efforts as potential growth drivers. This endorsement comes despite recent challenges in Tesla's core automotive business, including a significant drop in European sales
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.Tesla's Shift from Automotive to AI and Robotics
Jonas highlighted Tesla's transition from an "automotive pure play to a highly diversified play on AI and robotics"
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. This shift aligns with CEO Elon Musk's recent pivot towards robotaxis and AI development. The analyst believes that the market potential for non-automotive applications of embodied AI is significantly larger and could be adopted more rapidly than autonomous vehicles4
.Stock Performance and Price Target
Following the announcement, Tesla shares rose by 2%
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. Jonas reaffirmed his $430 price target for Tesla, one of the highest on Wall Street, implying a potential upside of 44-51% from the stock's recent trading price1
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. However, Tesla's stock has underperformed the broader U.S. market this year, declining by approximately 27%1
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.Challenges in the Automotive Sector
Tesla faces several challenges in its core automotive business:
- European sales fell by 45% in January, while overall EV sales in the region increased by 37%
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. - The company experienced its first annual deliveries drop in 2024
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. - High U.S. borrowing costs and fierce competition from Chinese manufacturers like BYD are putting pressure on sales
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Future Prospects: AI, Robotics, and Humanoid Robots
Jonas emphasized the potential of Tesla's AI and robotics initiatives:
- The Dojo supercomputer could potentially boost Tesla's market value by nearly $600 billion through advancements in robotaxis
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. - The humanoid robot "Optimus" is becoming "serious enough to move the stock," with Jonas estimating that every 1% of the U.S. labor force captured by Optimus could be worth approximately $100 per Tesla share
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. - Tesla showcased its robotaxi concept in October, with Musk promising driverless ride-hailing services in California and Texas this year
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Investor Outlook and Potential Risks
While Jonas sees potential for growth in Tesla's AI and robotics ventures, he also acknowledges potential risks:
- Deliveries could decline in 2025, which Jonas views as a potential "attractive entry point" for investors
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. - The EV market may face a prolonged "winter," potentially requiring further steps to mitigate near-term losses
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. - Regulatory hurdles and technological limitations could delay large-scale adoption of autonomous vehicles
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As Tesla continues its transition towards AI and robotics, investors and analysts will be closely watching the company's ability to execute on these ambitious plans while navigating challenges in its core automotive business.
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