Tesla (TSLA) Stock Upgraded by UBS — But the Bull Case Comes With Caveats

TLDR

• UBS upgraded Tesla ($TSLA) from Sell to Neutral with a $352 price target
• Tesla stock has fallen more than 21% in 2026, underperforming the broader market
• UBS forecasts only 1.6 million deliveries in 2026 and sees weak growth through 2030
• Robo-taxi expansion is moving slowly; Optimus robot production expected to miss Musk’s targets
• UBS analyst says Tesla trades more on sentiment and momentum than fundamentals

UBS has upgraded Tesla (TSLA) stock from Sell to Neutral, citing a more balanced risk-reward profile following a sharp decline in 2026.

Tesla, Inc., TSLA

Analyst Joseph Spak kept the price target unchanged at $352. The upgrade comes after Tesla stock dropped more than 21% this year, well below the broader market’s performance.

Spak said the current price level more evenly weighs near-term headwinds against Tesla’s longer-term opportunity in physical AI.

The stock has been under pressure from several directions. Weaker EV demand, a first-quarter energy shortfall, rising costs, and higher capital spending have all weighed on it.

Progress on Tesla’s two most closely watched projects — its robo-taxi network and the Optimus humanoid robot — has also been slower than expected.

Despite the upgrade, Spak was clear-eyed about the near-term picture. He warned the stock “may continue to exhibit high volatility” and that it trades more on sentiment and narrative than on underlying financials.

On the numbers, UBS is forecasting 1.6 million vehicle deliveries in 2026 — roughly flat year-on-year. The firm sees that growing at a 7% annual rate to around 2 million units by 2030. That’s well short of Wall Street consensus, which sits closer to 3 million.

Spak pointed to rising competition from Chinese manufacturers, soft U.S. EV demand, and a thin product lineup as reasons for the cautious delivery outlook.

Robo-Taxi Progress Under the Microscope

Tesla had indicated its robo-taxi service would be operating across nine cities by the first half of 2026. But Spak flagged concern over the slow pace of its Austin rollout.

He does not expect meaningful scaling in the near term. Longer term, UBS still sees potential for Tesla to offer low cost-per-mile transportation and become a major player in the U.S. robotaxi market.

Optimus Faces Timeline and Supply Chain Questions

On Optimus, Spak was measured. He said the program “will take longer than Musk’s stated targets” and flagged supply chain risk given the current reliance on Chinese-made parts.

UBS models around 5,000 Optimus units in 2027, rising to 30,000 by 2030. That’s a far cry from Musk’s ambitions for high-volume production starting next year.

From a valuation standpoint, using a 150x price-to-earnings multiple, Tesla’s current price implies $2.33 of 2027 earnings per share. UBS estimates $2.35; consensus is at $2.47.

Tesla’s P/E currently sits at 325, which several data providers flag as stretched relative to fair value.

The Netherlands recently became the first European country to approve Tesla’s Full Self-Driving technology on highways and city streets — a regulatory win that Cantor Fitzgerald cited when reiterating its Overweight rating with a $510 target.

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