Key Takeaways Tesla was named the "Top Pick" for U.S. auto firms by Morgan Stanley, which pointed to the EV maker's moves into AI and robotics.Morgan Stanley has an "overweight" rating and $430 price target for Tesla.

Morgan Stanley analyst Adam Jonas has backed struggling electric vehicle maker Tesla (TSLA) and indicated the stock could have as much as 50%

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.

Industry data showed Tesla sales fell 45% in Europe in January while overall EV sales jumped 37% in the region.

Tesla (NASDAQ:TSLA) bulls don’t dwell on the challenges facing its auto business. Instead, they see the company’s real value in its ambitious

Tesla shares rose 2% on Monday as Morgan Stanley analyst Adam Jonas said he sees shares of the EV giant rising to $430 as it diversifies into artificial intelligence and robotics.

Tesla (NASDAQ:TSLA) is still a top pick at Morgan Stanley despite recent softening sales trends. Analyst Adam Jonas thinks Tesla's (NASDAQ:TSLA) softer auto deliveries are emblematic of a company in the transition from an automotive pure play to a highly diversified play on AI and robotics.