Tesla shares (TSLA) is on the rise, Downgraded to sell from neutral Analysts at UBS reported they had raised their price target on the EV maker to $197 per share.
Yahoo Finance Automotive Reporter Pras Subramanian Join Market Domination as he talks about the analyst note and what it means for the stock going forward.
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This post Nicholas Jacobino
Video Transcript
Now, let’s take a look at some of the calls today.
Now UBS has downgraded Tesla from neutral and is selling its bonds, saying it is finding it increasingly difficult to justify further appreciation.
We invited the pros from Yahoo Finance, Marin and Andras, to explain one money line I noted here: Meanwhile, Tesla is investing heavily in AI, and the technology is advancing.
It is said that investments are costly, the pace of improvement is slow, and it takes a long time to see results.
Ah, that’s about it.
no.
Yes, but I’m not ready to sell it here.
He raised his price target to 197 at UBS because, as we all know, Tesla is currently trading too low.
But essentially, the call here is based on the valuation methodology that you just mentioned, so part of the valuation here is that the auto business is worth X amount, and then there are other activities, like energy and robotics and FSD value.
why?
But in this sense, their analysis shows that other valuable activities were overvalued by the market by more than 60%.
So he thinks there’s some room to go down because other activities are riskier and have a longer-term horizon, and it’s unclear whether they’ll actually be profitable.
That’s the current concern with Joseph’s back and UB, but interestingly the stock isn’t down today.
Indeed, shares initially took a small hit when the memo was released in pre-market trading, but have since risen along with the broader market.
right.
Today and Friday, EV stocks will be trading all on emotion.
