UBS Bullish on Tesla (TSLA): Robotaxi Rollout Sparks Price Target Surge

Wall Street's getting a caffeine jolt from Tesla's robotaxis—and UBS is leading the charge. The Swiss bank just slapped a turbocharged price target on Elon's EV empire as autonomous cabs hit real-world streets.

Autopilot pays off

No more 'coming soon' promises—Tesla's self-driving fleet is actually ferrying passengers in select cities. UBS analysts see this as the inflection point they've been waiting for, though skeptics whisper about regulatory speed bumps ahead.

The cynical take? Another Tesla valuation leap means shortsellers will need stronger stomachs. Remember when 'fundamentals' mattered? Neither does the Nasdaq.

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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 bump is priced into the share price.

At the same time, Wedbush technology analyst Dan 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. And 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 risk from current levels.