Despite hype about AI and Robotaxis: The major Swiss bank UBS recommends selling the Tesla share. The analysts warn of potentially overvalued future visions.
• UBS confirms “Sell” rating for Tesla with a price target 190 US dollars
• Survey shows declining interest in Tesla
• Strain strong competition and regulatory uncertainties
UBS recently confirmed its sales recommendation for Tesla’s share and issued a price target of $ 190-a clear downward potential compared to the current course of $ 342.69 (as of June 02, 2025). The company under the direction of Elon Musk is considered a pioneer in the field of autonomous driving, develops your own AI chips (dojo) and invests in Humanoid robots (Optimus). Nevertheless, the major Swiss bank remains skeptical: these technologies would not yet make any significant contribution to sales. According to investing.com, the focus of the analysis is still the core business with electric vehicles (EVS) – and this is exactly where UBS currently sees clear weaknesses.
UBS sees risks: Winning interest in Tesla and electric cars?
According to the current UBS Evidence Lab Global EV survey with over 10,000 participants, which is quoted by Investing.com, an enthusiasm for Tesla in the USA, China and Europe shows: “The decline in the top election was quite clear for Tesla in all three main regions,” said the UBS analysts.
The proportion of consumers who consider a Tesla purchase also fell to 36 percent in the previous year. As a preferred manufacturer of battery -electric vehicles (BEVS), Tesla fell from 22 percent to 18 percent. “The survey shows a declining interest in electric vehicles and the Tesla brand worldwide,” Insider Monkey quotes the UBS analysts.
According to the UBS, the selection of models is limited and the high pricing restricts the affordability – two factors that deter potential buyers. In addition, according to UBS, the market is particularly saturated in the USA. In this context, the brand image is also assessed critically. In Europe in particular, Tesla has a loss of reputation, which is partly associated with Elon Musk’s political positioning.
Tesla under pressure: strong competition and regulatory uncertainty
According to UBS, another stress factor is the increasing competition from Chinese providers such as BYD or NIO, so Investing.com. These companies offer technologically competitive vehicles at significantly lower prices. Especially on the growth -strong Chinese market, Tesla is threatening the connection – a fact that significantly narrows the international growth potential.
In California, one of the most important sales markets for Tesla in the USA, changing regulations could have a negative impact on the sales figures. The UBS did not give details, but the concern about stricter requirements or abbreviated subsidies remains a risk for the future.
Tesla share between innovative strength and reality
Although projects such as robotaxis, autonomous driving functions and humanoid robots have great interest and could recover enormous sales potential in the long term, the risks in the core business are currently outweighed. Therefore, analyst Joseph Spak remains at his sales recommendation. According to UBS, investors who are looking for high-return shares in the field of artificial intelligence should consider other titles that offer a better risk revenue ratio.
Editor finance.net
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