Investment bank Morgan Stanley continues to be one of Tesla's biggest cheerleaders as it reasserts that the firm's future is dependent on humanoid robots and the AI revolution. Tesla's stock has been on a consistent downward trend this year as investors question the firm's vehicle deliveries. The shares dropped by 10% during trading yesterday before closing the day 2.6% lower after they jumped following a market rumor about President Trump deciding on a 90-day reprieve for his tariff announcements. In its note, Morgan Stanley maintains an Overweight rating on Tesla shares, maintains its $410 share price target and keeps the stock as a Top Pick.

Tesla's shares are on a tear today after having gained 4.8% in two hours of trading. The stock is still down by 2.8% since President Trump won the November election amidst a flurry of bearish notes and vehicle delivery problems. However, throughout the turmoil, Morgan Stanley has remained an ardent supporter of Tesla and continues to point out that it believes the firm benefits from longer-term tailwinds from AI, robots and other associated technologies.

Morgan Stanley's previous note for Tesla reduced the firm's share price target to $410 from $430 and kept an Overweight rating on the stock. The bank had trimmed the estimates to account for lower deliveries.  Yet, the bank maintained that the lower deliveries did not change its narrative for the firm.