Investors should snap up Tesla shares in the middle of the electric vehicle maker's stock rout, according to Morgan Stanley. Analyst Adam Jonas reiterated his overweight rating and top-pick designation on the stock. Jonas' price target of $430 implies shares can rebound 93.6% over the next year from Monday's closing level. "We see the pullback as a buying opportunity for an embodied [artificial intelligence] compounder," Jonas, a noted Tesla bull, wrote to clients in a Monday note. After Monday's sell-off of more than 15%, which marked its worst session since 2020, the stock is now down about 45% on the year. Shares are also more than 50% below a record high set in December. TSLA 1Y mountain Tesla, 1-year That decline comes as pressure mounts due to weak sales data, souring brand sentiment and a de-grossing of the market, Jonas said. Brand "degradation" and sliding sales have taken over the Tesla narrative from its AI leadership with humanoid robots, the analyst added. Jonas said the stock could go as low as his $200 bear case and as high as his $800 bull case over the next 12 months. While Tesla's reputation has been reshaped by CEO Elon Musk's role helping President Donald Trump slash the federal workforce, Jonas said investors can also look to company-specific catalysts going forward. For one, Jonas said an Austin robotaxi unveiling event is expected between June and August that would show its first commercial product that does not have a steering wheel. The analyst also said to expect an AI and robot humanoid day before the end of the year. Jonas' call puts him in the majority on Wall Street. Despite growing concerns about the stock amid the pullback, the most popular rating of analysts polled by LSEG is a buy. Tesla shares popped more than 4% in Tuesday's premarket trading following Jonas' note to clients.
