Tesla (NASDAQ:TSLA) is back as Morgan Stanley's Top Pick in U.S. autos, with Adam Jonas doubling down on his bullish stance even as the stock has struggled. Jonas, a long-time Tesla backer, believes the company still has up to 50% upside, pointing to its potential in AI and robotics as a key reason for optimism.

Tesla's stock has had a rough start to the year, down 27.45% year-to-date, which Jonas says is due to a clear buyers' strike. The EV giant is also facing stiff competition in China, where January sales fell 11%, and in Europe, where sales plunged 45% year-over-year, despite the overall EV market growing 37%.

Still, Jonas is sticking with Tesla. He raised his price target to $430 from $400, after previously bumping it up from $310 in December. While the stock is down nearly 40% from its December peak, it has rallied 27.6% in the past month, a sign of investor interest despite ongoing challenges.