According to Sawyer Merritt, Morgan Stanley has increased its TSLA price target to $425 (from $410), attributing a $60 per share equity value specifically to Tesla's Optimus humanoid AI business, based on its leadership in manufacturing scale, vertical integration, access to data, compute, and energy resources, and a strong position in real-world AI (Source: Sawyer Merritt on Twitter, Dec 7, 2025). The bank sees significant AI-driven business opportunities for Tesla in the humanoid robotics market, considering it a nascent but high-potential sector. Morgan Stanley also highlights Tesla's Full Self-Driving (FSD) advancements as a key factor in the company's future growth, emphasizing practical applications in autonomous driving and robotaxi scalability. The updated analysis signals robust AI industry implications, with Morgan Stanley now covering Embodied AI as a standalone segment, underscoring growing investor focus on AI-powered robotics and automation within automotive and industrial sectors.