"UBS argues that current share levels 'more evenly balance' Tesla's near-term demand challenges and investment period with its long-term physical AI opportunity. That's analyst-speak for saying the stock had gotten cheap enough to remove the Sell rating, even if full Buy conviction isn't there yet."
"The firm believes concerns over electric vehicle demand, a Q1 energy shortfall, higher costs, higher capital spending requirements, and slow progress on robo-taxi and Optimus have weighed on the stock."
"Importantly, UBS expects eventual progress on the automaker's robotaxi and Optimus programs, and continues to view Tesla as a leader in physical AI."
UBS analyst Joseph Spak upgraded Tesla's stock rating to Neutral from Sell, citing a more balanced risk-reward at current price levels. Tesla's stock has declined 20% year-to-date, prompting this cautious optimism. UBS believes that current share levels reflect near-term demand challenges and long-term AI opportunities. Concerns over electric vehicle demand and higher costs have impacted the stock, which trades more on sentiment than fundamentals. UBS maintains a price target of $352, expecting progress on Tesla's robotaxi and Optimus programs.
Read at 24/7 Wall St.
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