UBS raised its price target on Tesla to $442 from $364, maintaining a neutral rating. The new target implies about 12% upside from the stock's last close of $394.06. The bank's revised valuation comes as Tesla shares have fallen 13% year to date amid slowing EV demand.
UBS raised its price target on Tesla Inc. to $442 from $364, maintaining a neutral rating on the electric-vehicle maker as the bank updated its valuation model.
The new target, set by UBS analysts in a note published Wednesday, implies about 12% upside from Tesla's last close of $394.06. The bank kept its neutral stance even as it boosted its price estimate by 21%, citing a reassessment of the company's long-term growth trajectory.
Tesla shares have fallen about 13% year to date, underperforming the broader market as the company navigates a slowdown in EV demand and rising competition. The stock slipped 4% on Tuesday after surging nearly 7% the prior session, when it led gains among the Magnificent Seven mega-cap tech stocks. The average analyst price target on Tesla stands at $406.35, according to FactSet data, with a consensus rating of hold.
The UBS upgrade comes amid a flurry of analyst activity on Tesla. RBC Capital Markets gave the stock a buy rating on Tuesday, citing potential upside from a possible combination with SpaceX, while JPMorgan maintained a neutral stance. The wide dispersion in analyst views — with targets ranging from $125 to $600 — reflects deep disagreement over whether Tesla's future lies in its core auto business or in CEO Elon Musk's vision of a robotics and AI-driven company.
For holders, the UBS target raise provides a modest floor but the maintained neutral rating signals the bank sees limited near-term catalysts. Investors will watch Tesla's second-quarter delivery numbers, due later this month, for signs of whether demand is stabilizing after two consecutive years of annual delivery declines.
This article is for informational purposes only and does not constitute investment advice.
