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

Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 3.3% in the pre-market session after Morgan Stanley analyst Adam Jonas named the stock a "Top Pick," citing the potential in the autonomous vehicle market and robotics.

Tesla (TSLA) stock is advancing 2.5% after Morgan Stanley issued an upbeat note on TSLA stock. The investment bank, which continues to identify TSLA as a top pick, expects the company’s total addressable market (TAM) to rise going forward.

Shares of Tesla (NASDAQ: TSLA) are trading lower on Tuesday. The company's stock had lost 7.5% as of 10:30 a.m. ET and as much as 8% earlier in the day. The drop comes as the S&P 500 lost 1.9%, and the Nasdaq Composite lost 2%.