UBS analyst Patrick Hummel downgraded Tesla's stock from Buy to Hold and raised the price target from $220 to $270. Despite acknowledging Tesla's success in pricing, production, and technology, the stock's continuous rise has made it less attractive to some analysts. Tesla's stock surpassed its previous price target in June, boosted by deals with other automakers and excitement about artificial intelligence, resulting in a 28% increase in shares. Still, it subsequently experienced multiple downgrades as analysts aim to capitalize on their gains. Tesla's second-quarter earnings report dispelled some margin concerns and validated the company's price cuts. Tesla needs progress in self-driving technology to boost margins further. The number of analysts with a Buy rating on Tesla has decreased, and the average target price for the stock has also declined.
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00:00 It's Benzinga and here's what's on the block.
00:02 UBS analyst Patrick Hamel downgraded Tesla's stock from buy to hold and raised the price
00:08 target from $220 to $270.
00:12 Despite acknowledging Tesla's success in pricing, production and technology, the stock's
00:16 continuous rise has made it less attractive to some analysts.
00:20 Tesla stock surpassed its previous price target in June, boosted by deals with other automakers
00:24 and excitement about artificial intelligence, resulting in a 20% increase in shares, but
00:29 subsequently experienced multiple downgrades as analysts aimed to capitalize on their gains.
00:35 Tesla's second quarter earnings report dispelled some concerns about margins and validated
00:39 the company's price cuts.
00:41 Tesla's needs progress in self-driving technology to boost margins further.
00:45 The number of analysts with a buy rating on Tesla has decreased and the average target
00:49 price for the stock has declined as well.
00:51 For all things money, visit Benzinga.com.
00:53 (upbeat music)