Tesla Inc. shares surged up to 5% on Monday morning following Wall Street's opening, after Morgan Stanley analyst Adam Jonas named the car giant as his "top pick" in the automotive sector, knocking Ford Motor Company down to second place.
"With 40% upside to our $310 target, more managed expectations on autos, and powerful emerging drivers of firm value, we make Tesla our new 'Top Pick' in US Autos," Jones wrote in a note. The Morgan Stanley auto analyst, however, cautioned that Tesla's growth is expected to weaken further in China, with the car giant "unlikely" to gain a green light from the Chinese government to allow Tesla to operate its robotaxi in the country.
Nevertheless, the upbeat sentiment appeared to be encouraged by the news that Tesla's upcoming Roadster model will be able to fly, with a demo expected "sometime next year."
The carmaker's stock soared 5.14% to sell at $231.09 apiece at 10:16 am ET.
