Tesla stock downgraded to "sell" by UBS due to expensive AI investments and delayed robotaxi event

From Nasdaq: 2024-07-16 11:02:06

Tesla (TSLA) stock is down 39% from all-time highs, but up 43% in the last month. Despite volatility, it has returned close to 16,000% since its IPO in 2010. Investors excited for the Tesla Robotaxi event, which has been delayed, give UBS grounds to downgrade the stock.

UBS downgrades Tesla to “sell” due to expensive AI investments. Data Trek report notes that only 9% of Tesla’s value is based on current earnings, making it a “faith-based stock.” Valued at 90x forward earnings, Tesla faces competition in the EV market, especially with the delayed robotaxi event.

Tesla’s much-anticipated robotaxi event has been delayed until October as design changes are made. A potential Trump win in the U.S. presidential race could benefit Tesla due to trade policies. Analysts recommend mostly holding or selling Tesla stock, with an average target price 25% lower than the current price.



Read more at Nasdaq: Is Tesla Stock a Buy or Sell on Robotaxi Delay?