Tesla (TSLA) misses second quarter revenue, but Morgan Stanley says he still buys

Tesla, Inc. (NASDAQ:TSLA) is one of AI stocks wave making stock on Wall Street. On July 24th, Morgan Stanley repeated the stock as “overweight” with a price target of $410.

Morgan Stanley says Tesla remains the top pick following the company’s revenue report on Wednesday. The electric car manufacturer reported top-line and bottom-line errors in its second-quarter results, with car revenue falling 16% year-on-year to $16.7 billion.

Analyst Adam Jonas is the well-known Tesla Bull, but he cut his earnings per share by 14% in 2025, in contrast to previous forecasts. Cuts in delivery and increased operating expenses are causing this change.

“The 2Q figures were a small beat when the FCF was destroyed. Tesla is crossing the autonomy crack, absorbing investments in slower volumes, elimination of EV incentives, tariffs and new initiatives that may not create margins over the years.”

Tesla, Inc. (NASDAQ: TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence with autonomous driving technology and robotics initiatives.

Although we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer a greater reverse chance, pose a risk of decline. If you’re looking for a highly undervalued AI stock that can make a significant profit from the tariff and supervision trends of the Trump era, check out our free report. Best Short-Term AI Stocks.

Read next: 10 AI stocks on Wall Street radar and 10 AIs in the spotlight now.

Disclosure: None.