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Tesla (TSLA) is in focus this morning following a KBA report that suggests the U.S.-based electric vehicles behemoth is losing share in Germany.
According to the road traffic agency, the multinational saw its sales volume crash over 75% last month in the largest European economy.
The data is significant considering regional EV sales overall were actually up in February. Still, a senior Morgan Stanley analyst, Adam Jonas, continues to see Tesla stock as a top pick for 2025.
At the time of writing, TSLA is down more than 35% versus its year-to-date high.
Could Tesla Stock Surpass the $400 Level Again in 2025?
Adam Jonas expects Tesla’s commitment to autonomous vehicles and robotics to unlock material upside in its share price this year.
In fact, humanoid robots could prove to be a multi-decade, trillion-dollar opportunity for TSLA, he told clients in a research note this week.
Jonas currently rates the EV stock at “overweight” with upside to $430 that indicates potential for a 60% rally from current levels.
In January, the company reported its first-ever decline in annual deliveries. But the Morgan Stanley analyst downplayed that weakness in his report, adding it’s “emblematic of a company in the transition from an automotive pure play to a highly diversified play on AI and robotics.”
Morgan Stanley’s Bull Case Calls for an $800 Tesla Stock
Jonas expects every 1% of the U.S. labor force that its “Optimus” humanoid robot captures to result in a $100 boost to Tesla stock price. “We see embodied AI as the driver for upside to our $800 bull case,” he added.
Finally, the Morgan Stanley analyst expects Tesla’s energy storage portfolio to drive meaningful upside in its share price this year as well.
Investors should also note that TSLA is not seeing weakness in sales volume across the board. In the U.K., its Model 3 was actually the second most popular car (sales wise) after the Mini Cooper last month.
Wall Street Has High Hopes for Tesla in 2025
Despite ongoing weakness, other Wall Street analysts seem to agree with Jonas on Tesla shares as well.
While the consensus rating on TSLA currently sits at “Hold,” the mean target of about $352 indicates potential upside of about 30% from here.
