Morgan Stanley states that while investors remain positive on Tesla's Physical AI strategy, supported by stronger Full Self-Driving adoption, the company faces increasing pressure for measurable results due to weaker margins, higher R&D spending, and cash burn. Key proof points for investor confidence include more Robotaxis, greater city density, rising unsupervised miles, better economics, and tangible Optimus progress. Robotaxi remains the near-term test of Tesla's AI ambitions.