Tesla (TSLA) is emerging as a key player in the race for embodied AI, said Morgan Stanley analyst Adam Jonas. In a new note, the four-star-rated analyst highlighted Tesla’s humanoid robot, Optimus, as a major part of the company’s long-term growth potential. He reiterated an Overweight rating on the stock with a $410 price target, citing Tesla’s expanding work in AI and robotics.
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Robots Could Lower Costs and Boost Efficiency
Jonas explained that one robot working at $5 an hour could replace two people earning $25 an hour. Over time, that could make each robot deliver roughly $200,000 in value. He said this kind of cost edge shows why robots could be a smart way for companies to save money and get more done.
Still, he noted that many people aren’t yet comfortable with the idea of riding in a driverless car or relying on a robot. But he compared it to the early days of air travel when flying also seemed risky to most. He said new tech often takes time to gain trust, and in the long run, safety and real cost savings will help win people over.
Looking ahead, Jonas estimated that a robot-powered car could reduce ride-share costs to below $0.20 per mile, almost one-tenth the cost of today’s human-driven rides.
Lastly, Jonas said that even the smartest robots and AI systems can’t function without energy. That’s why Tesla’s work in energy and charging infrastructure remains an important part of its long-term strategy. As he put it, “You can’t have GPUs without BTUs.”
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 15 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $305.37 per share implies 5.24% downside risk.
