Tesla Shares Drop After UBS Downgrade on Concerns Over Rally
- Any loss of enthusiasm over AI may affect Tesla multiple: UBS
- Rating cut to sell, 12-month target price raised to $197
ATesla Supercharger station in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Tesla Inc. fell after the stock was downgraded by UBS Group AG, which cited concerns that the carmaker’s shares have risen “too much, too soon” on optimism over its artificial intelligence plans.
Tesla was 1.6% lower in US premarket trading as of 4:30 a.m. in New York. The stock sank 8.4% Thursday, snapping an 11-day winning streak, as Tesla was said to postpone its planned robotaxi unveiling to October from next month to allow teams working on the project more time to build additional prototypes.