Analysts at bank UBS Group (UBS) have raised their price target on Tesla (TSLA) stock as the company launches its highly anticipated robotaxi in Austin, Texas.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
UBS took its price target on TSLA stock to $215 a share from $190 previously, saying that the company’s robotaxi is worth $99 per share in value, which is nearly half of the price target. However, despite the price target bump, UBS maintained a Sell rating on TSLA stock, saying the robotaxi is already priced into the shares.
At the same time, Wedbush technology analyst Daniel Ives rode in a robotaxi and said that the experience exceeded his expectations. Ives’ also issued a note about TSLA stock on June 23, the day of the official robotaxi launch in Texas. He maintained a Buy rating on the shares and Wall Street-high price target of $500 a share.
Challenges Ahead
The robotaxi launch and bullish analyst comments have TSLA stock up nearly 10% on June 23. However, while there is plenty of excitement about the robotaxis, Tesla continues to face numerous challenges moving forward, especially when it comes to sales of its electric vehicles.
Recent data showed that Tesla’s electric vehicle sales fell 49% year-over-year in Europe as consumers turn away from the brand and the politics of CEO Elon Musk. Sales are also down in other jurisdictions, notably China. The Tesla brand has taken a hit from Musk’s involvement with the administration of U.S. President Donald Trump. TSLA stock is down 13% on the year.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 14 Buy, 12 Hold, and nine Sell recommendations issued in the last three months. The average TSLA price target of $286.14 implies 11.18% downside from current levels.
