Morgan Stanley: Tesla’s AI manufacturing is a catalyst for humanoid robotics race

Published 01/07/2025, 08:18
© Reuters

Investing.com -- Tesla’s manufacturing capabilities in AI and robotics will serve as a foundational force in the humanoid robotics race, according to Morgan Stanley (NYSE:MS) analysts.

“The factory is the ’mother’ of physical AI,” a team led by Adam Jonas wrote in a Monday note, describing it as “the mechanism which creates the robotic beings (probes).”

As these probes evolve through environmental interaction, the manufacturing process can dynamically adapt to improve efficiency and morphology, they added.

Tesla (NASDAQ:TSLA) remains a top pick at Morgan Stanley, with analysts stressing the company’s progress in autonomous capabilities.

“Prior to genAI, we thought autonomous cars were over-hyped. After genAI, autonomous cars may still be over-hyped but... mostly deservedly so,” the analysts noted.

They referenced Tesla’s first fully autonomous delivery of a vehicle to a customer as a major technological marker.

While the rollout of Tesla’s robotaxi pilot in Austin has triggered a wave of investor questions regarding potential safety incidents, the analysts point to a broader geopolitical lens.

They note that the “rapid rate of change in China is the ultimate ‘stalking horse’,” which is steering the U.S. national security agenda in a direction that could ultimately override important public safety considerations.

Last week, Tesla launched its fully driverless robotaxi service in Austin, marking the first time the company’s autonomous vehicles are transporting members of the public through its long-developing ride-sharing platform.

The report also points out that automakers “don’t want to talk about humanoids,” distinguishing between manufacturers openly investing in AI-enabled robotics and those who are “investing in humanoid robots, but may not want to highlight it.”

Traditional OEMs acknowledge the importance of this emerging area but hesitate to discuss it publicly due to labor sensitivities and other strategic concerns, analysts said.

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