Tesla, Inc. (TSLA)
UBS Securities recently reiterated its “Sell” rating on Tesla, maintaining a cautious stance as near-term fundamentals remain under pressure. UBS did raise their price target forecast to $307.00 from $247.00. The firm continues to flag concerns around EV demand normalization, noting that growth is becoming more competitive and less driven by early-adopter dynamics. Ongoing pricing pressure, as Tesla adjusts vehicle prices to defend market share, is also weighing on revenue quality and profitability, contributing to margin volatility.
While UBS acknowledges Tesla’s long-term optionality, particularly from advancements in autonomous driving and the expansion of its energy storage business, it views these catalysts as longer-dated and less certain in the near term. Execution risks, including sustained margin compression and the pace of innovation monetization, remain central to the investment debate. As a result, UBS sees Tesla’s valuation as difficult to justify without clearer evidence of improving margins or a renewed acceleration in demand, reinforcing its measured outlook on the stock.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
