Banking giant selects Tesla stock as ‘top pick', updates TSLA price

Group 1 - Morgan Stanley maintains a bullish outlook on Tesla, naming it the top pick in the U.S. auto sector, with a price target raised to $410, indicating a potential 35% upside from the last closing price of $302 [1] - Analyst Adam Jonas highlights Tesla's leadership in areas such as artificial intelligence, robotics, energy, manufacturing, and large-scale infrastructure, noting its strong position to scale physical AI applications due to control over data and fleet operations [3] - Despite the positive outlook, Tesla faces challenges including rising competition from Chinese automakers, declining sales, and public backlash related to CEO Elon Musk's political views [4] Group 2 - Recent data shows Tesla's sales of China-made electric vehicles fell 8.4% year-over-year in July, with a total of 67,886 Model 3 and Model Y units delivered, marking a 5.2% drop from June [5] - Investors are advised to prepare for a challenging period for Tesla stock, as the company enters its historically weakest stretch of the year from August to October, although Wall Street sentiment remains positive with projections that TSLA will stay above $300 over the next 12 months [7] - The Tesla board has approved a new compensation package for Musk, which includes a 96 million share restricted stock grant valued at around $30 billion, with shares vesting after two years if Musk remains in service [8]