Tesla Inc shares ticked up on Monday after Elon Musk’s electric vehicle giant was granted ‘top pick’ status by Morgan Stanley.
Despite flagging car sales most recently, Morgan Stanley pointed to growth prospects from its artificial intelligence and robotics efforts in a bullish note.
Lower sales signalled its move from an “automotive pure play to a highly diversified play on AI and robotics,” analyst Adam Jonas wrote.
Chief executive Musk has signalled such a shift towards the likes of robotaxis over the past year, despite wider concerns around development and regulation.
A $430 share price target was also reiterated by Morgan Stanley, with Jonas adding a possible drop in sales over the course of 2025 could offer an “attractive entry point”.
Shares were up 2.4% at $299.93 on Monday.