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.

Morgan Stanley has once again named Tesla, Inc. its "Top Pick" among U.S. automakers, arguing that the stock's nearly 30% decline this year reflects a "clear buyers' strike." Analysts led by Adam Jonas maintained an 'Overweight' rating and a $430 price target on the stock on Monday despite growing concerns over weak car deliveries and declining market share.

Tesla shares fell Tuesday, extending recent losses amid concerns about tariffs, weak Chinese sales, and souring sentiment, with analysts at Bank of America lowering their price target for the stock.

Baird analyst Ben Kallo believes Tesla stock is headed lower and soon. He felt the same way early in 2024—and he was right.