Morgan Stanley Predicts Tesla Recovery Driven by AI and Robotics; Analyst Sets $430 Price Target

Morgan Stanley forecasts a major recovery for Tesla shares, driven by its AI and robotics ventures. Analyst Adam Jonas named Tesla his top U.S. auto pick, citing autonomy and robotics as key growth catalysts. He set a $430 price target, indicating a potential 46.8% upside. Jonas believes Tesla's transition from an automotive pure play to an AI and robotics company presents an attractive entry point for investors. While Tesla's auto deliveries have been below expectations, Jonas sees this as part of the company's shift. Humanoid robots, though not yet in the base or bull case, could significantly impact the stock, with each 1% of the U.S. labor force captured by Tesla's Optimus robot potentially adding $100 per share. Jonas sees embodied AI as the driver for upside, with a bull case target of $800. Tesla shares increased 2% following Jonas's statement.