(Updates with the analyst's commentary.)
Morgan Stanley raised the price target on Tesla (TSLA) to $417 from $415 while maintaining its equalweight rating.
The brokerage believes Tesla's Robotaxi and Optimus robot "will be primary drivers for the stock."
The company launched robotaxi Miami on July 3, Morgan Stanley said in its note, adding it expects a launch in Miami, Phoenix, Orlando, Tampa and Las Vegas "by year-end."
Morgan Stanley expects "constructive updates" across both Robotaxi and Optimus in fiscal Q2 2026 but "likely not enough to drive a decisive re-rating."
Tesla has an average rating of hold and mean price target of $407.35, according to analysts polled by FactSet.
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Price: $400.30, Change: $+5.54, Percent Change: +1.40%