Tesla stock rising in spite of UBS downgrade

Shares of Tesla (TSLA) are moving higher despite receiving a downgrade from Neutral to Sell by UBS analysts. The firm did, however, raise its price target on the EV maker to $197 per share.

Yahoo Finance autos reporter Pras Subramanian joins Market Domination to talk on the analyst note and what it means for the stock moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

All right, let’s get to some calls of the day.

Now, U Bs downgrading Tesla from neutral to sell the note saying it’s increasingly difficult to justify valuation for more.

We’re bringing in Yahoo Finance’s pros to Marin and Andras the here was one money line I in the note here while Tesla is investing heavily in A I and the tech is making progress.

They say investment is costly, pace of improvement is slow and the payoff is long dated pretty much.

Uh Yeah, that’s pretty much it.

No.

So yeah, so don ready to sell here though.

He though he did raise Jo Jo back at U Bs did raise his price target to 197 because they were, you know, well, low where Tesla’s trading at right now.

But basically the the the call is here, you mentioned valuation the way that they did it kind of some of the parts evaluation here is the auto business was, was worth X and then there are other activities like energy and robotics and, and FSD worth worth.

Why?

But in this sense, in this sense, they they in their analysis that other activity that was worth was kind of overvalued by the market by a lot by over 60% or so according to their analysis.

So he thinks that there’s some possible room to come down because the fact that these other activities have high risk, long term horizons, it’s unknown whether they’ll actually pay off.

So this is the concern for, for Joseph’s back and, and U Bs right now, I mean, the funny thing is the stock isn’t down today.

It actually, I mean, initially, I think in pre market trading, when this note came out, it took a little bit of a hit and since then it’s turned higher along with the rest of the market.

Right.

All the EV stocks, all sentiment based sort of trading here today and on Friday.