Tesla’s stock (TSLA) has dropped nearly 7% in the past five sessions due to AI-related pressure but is up almost 3% on Nov. 17. Despite weakness, the stock is still up over 90% from its year-to-date low, but options data suggests a potential 20% decline by February 2025.

UBS analysts caution against buying Tesla shares at current levels due to challenges in the electric vehicle segment and rising costs. Despite Elon Musk’s optimism about AI, the company’s core EV business faces headwinds like tariffs and loss of tax credits, affecting profitability.

Wall Street views Tesla shares as overvalued, with a consensus “Hold” rating and a mean target of $385 suggesting a potential 7% downside from current levels. Analysts believe the stock is facing challenges heading into 2026, impacting its valuation and performance.

Read more at Barchart: Should You Buy the Pop in Tesla Shares Today?