UBS Maintains Neutral on Tesla, Lowers Price Target to $225
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 25 2024
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Should l Buy TSLA?
Source: Benzinga
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 361.830
Low
25.28
Averages
401.93
High
600.00
Current: 361.830
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Declining Delivery Expectations: The company is expected to deliver approximately 366,000 vehicles in Q1 2026, representing a 9% year-over-year increase, yet a 13% sequential drop from 418,227 vehicles in Q4 2025, indicating serious challenges in delivery performance.
- Deteriorating Profitability: Tesla's latest operating margin fell to 5.7%, down from 6.2% year-over-year, and earnings per share plummeted 60% to $0.24, highlighting the company's financial struggles amid fierce competition and pricing pressures.
- Increased Capital Expenditures: With capital expenditures reaching $8.5 billion in 2025 and expected to rise in 2026, these investments may offer long-term growth opportunities but significantly elevate the company's risk profile.
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- Delivery Data: BYD's EV deliveries reached 2.26 million, up nearly 28%, while Tesla's deliveries fell by 9%, indicating BYD's superior performance in meeting market demand, posing a threat to Tesla's sales.
- Technological Innovation: BYD introduced a fast-charging battery that can charge from 20% to 97% in just 12 minutes even in extreme temperatures, which may attract more price-sensitive consumers and enhance its competitive edge.
- Strategic Shift: Tesla plans to utilize vacant space in its Fremont, California factory to produce AI-powered Optimus humanoid robots; while this strategic pivot may present new growth opportunities, it also carries execution risks, especially given its high valuation, necessitating cautious evaluation by investors regarding its long-term outlook.
See More
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- Retail Sentiment Weakness: Despite a positive market start, retail sentiment towards SPDR S&P 500 ETF and Invesco QQQ Trust remains 'extremely bearish', indicating skepticism about the rally, with trading volumes remaining high.
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See More
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- Analyst Optimism: Morgan Stanley analysts project a nearly 28% increase in Apple's stock price over the next 12 months, with about 60% of analysts rating it as a 'buy' or 'strong buy', reflecting strong market confidence in the company.
- Strong Upgrade Demand: Morgan Stanley's Global Smartphone Survey reveals a record high in the number of consumers in the U.S. and China planning to upgrade to new iPhones in the next 12 months, suggesting that Apple is poised to gain market share despite industry challenges.
- Foldable Phone Potential: The survey indicates that 27% of current iPhone users are 'extremely interested' in purchasing a foldable iPhone, with projections suggesting that Apple could more than double the global foldable smartphone market within 18 months of its launch, potentially generating up to $60 billion in annual revenue.
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- AI Partnership Expansion: Amazon's partnership with OpenAI has been expanded, with Amazon investing $50 billion while OpenAI commits to spending $138 billion on AWS cloud services over the next eight years, which is expected to drive revenue growth for Amazon's cloud segment.
- Zoox Robotaxi Expansion: Amazon's Zoox plans to launch limited robotaxi services in Austin and Miami, currently awaiting regulatory approval, but is projected to account for 12% of autonomous vehicle trips by 2032, indicating significant market potential.
- Market Outlook Analysis: Morgan Stanley estimates that the addressable market for robotaxis in the U.S. exceeds $1 trillion, and Zoox's success could provide Amazon with a new revenue stream, further diversifying its business structure.
See More
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- Record Upgrade Interest: Morgan Stanley's Global Smartphone Survey reveals that the percentage of consumers in the U.S. and China planning to upgrade to a new iPhone in the next 12 months has reached an all-time high, indicating strong demand and brand loyalty for Apple.
- Market Share Expectations: Analyst Erik Woodring from Morgan Stanley predicts that Apple will be the only major global smartphone vendor to gain market share in 2026, as its brand strength is expected to help it navigate the challenges posed by memory chip shortages.
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