May 5 - Morgan Stanley (MS, Financial) has identified Tesla (TSLA, Financial) as the U.S.'s strongest candidate to challenge China's growing dominance in autonomous technology, citing the company's leadership across AI, robotics, and manufacturing.
The bank said Tesla is “best positioned” to drive progress in the U.S.'s autonomous race, even as China outpaces the U.S. in production of drones and embodied AI systems like humanoid robots. Analysts led by Adam Jonas warned that without Tesla, the U.S. may struggle to close the competitive gap.
The U.S. has recently moved to accelerate development, with the Department of Transportation and the National Highway Traffic Safety Administration unveiling updated policies that allow developers of self-driving cars to apply for exemptions from certain safety rules.
Tesla's edge, Morgan Stanley said, rests on six pillars: data, robotics, AI, energy, manufacturing, and space. The company has 7 million vehicles on the road and aims to top 100 million by 2035, making its cars a key platform for real-time AI training and deployment.
Tesla is expected to launch unsupervised autonomous driving in Austin by June, with Texas's regulatory climate seen as a potential advantage, the report added.
Shares of Tesla fell nearly 3% in Monday trading.
