UBS Predicts Tesla (TSLA.US) Will Enter Cash Burn Phase, Raises Price Target to US$352 with Sell Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
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Should l Buy ?
Source: aastocks
Tesla's Transition: Tesla is shifting from an electric vehicle company to a physical AI company, but its spending patterns do not align with typical AI company expenditures, according to a UBS report.
Capital Expenditure Increase: The company's average capital expenditure is projected to rise from US$10 billion annually to US$20 billion by 2026, leading to significant cash burn, estimated at US$6 billion for that year.
Earnings Forecast Adjustment: UBS has revised its earnings per share (EPS) forecasts for 2026 and 2027, increasing them to US$1.93 and US$2.34, respectively.
Target Price Update: UBS raised its target price for Tesla from US$307 to US$352 while maintaining a "Sell" rating on the stock.
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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.
