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

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.

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.

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.

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.

Morgan Stanley has once again named Tesla, Inc. its "Top Pick" among U.S. automakers, arguing that the stock's nearly 30% decline this year reflects a "clear buyers' strike." Analysts led by Adam Jonas maintained an 'Overweight' rating and a $430 price target on the stock on Monday despite growing concerns over weak car deliveries and declining