Tesla named ‘Top Pick’ in U.S. autos at Morgan Stanley

Morgan Stanley analyst Adam Jonas reinstated Tesla (TSLA) as the analyst’s “Top Pick” in U.S. autos, noting that shares are down nearly 30% year-to-date on a “clear buyers’ strike.” Tesla’s January sales in Europe were down 45% year-over-year in a month when European EV sales were up 37% year-over-year, according to Bloomberg, notes the analyst. Tesla FY25 deliveries could potentially decline year-over-year, adds the analyst, who would see this “creating an attractive entry point to our preferred embodied AI name.” Tesla’s 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,” adds the analyst, who maintains an Overweight rating and $430 price target on Tesla shares.