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.

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.

With the world making significant strides in artificial intelligence, some countries are concerned about the key figures leading these efforts.

Tesla shares jumped higher in early Monday trading, following a brutal February selloff, after a top Wall Street analyst reiterated his bullish outlook for the stock tied to its AI and robotics potential.

Morgan Stanley has reinstated Tesla as its “Top Pick” in the US auto sector, setting a price target of $430, which implies more than 47% upside from its current share price. The firm sees the recent 30% year-to-date decline in Tesla shares as a compelling entry point,