Tesla shares dropped after UBS Group AG downgraded the stock from neutral to sell, citing concerns that optimism over Tesla's artificial intelligence plans has pushed the stock price up too quickly. UBS analysts said that if enthusiasm for AI declines, it could impact Tesla's valuation. They noted Tesla trades at over 80 times forward estimated earnings. The analysts cut their price target for Tesla from over $1470 to over $190, implying an 18% decline from the previous day's close. Concerns are growing over the valuations of companies tied to AI technology, as seen in the recent sell-off of big tech stocks. Tesla is also facing a subdued outlook for electric vehicle sales.
Category
🗞
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:03Tesla shares dropped after UBS Group downgraded the stock from neutral to sell, citing concerns
00:07that optimism over Tesla's artificial intelligence plans has pushed the stock price up too quickly.
00:13UBS analysts said that if enthusiasm for AI declines, it could impact Tesla's valuation.
00:19They noted Tesla trades at over 80 times forward estimated earnings.
00:23The analysts raised their price target for Tesla to $197 from $147, implying an 18 percent
00:29decline from the previous day's close.
00:32Concerns are growing over the valuations of companies tied to AI technology, as seen in
00:36the recent sell-off of big tech stocks.
00:39Tesla is also facing a subdued outlook for electric vehicle sales.
00:42For all things money, visit Benzinga.com.