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UBS Lifts Tesla to Neutral, Citing Balanced Risk After 2026 Slide

The move signals caution on near-term operations against hopes for autonomy and robots.

Overview

  • UBS, which raised its rating to Neutral on Tuesday, kept a $352 target and warned the stock could stay highly volatile.
  • The bank now models about 1.6 million vehicle deliveries in 2026 and roughly 2 million by 2030, well below many Wall Street forecasts.
  • UBS tied the softer outlook to weak EV demand in the U.S., tougher competition from Chinese makers, higher costs, and a thin product lineup.
  • It said Tesla’s robo-taxi launch is rolling out slower than planned and projected about 5,000 Optimus robots in 2027 and 30,000 by 2030, noting supply chain risks from parts sourced in China.
  • The report called the shares driven more by story than by cash flow or earnings, as other analysts split on value and regulators in the Netherlands cleared Tesla’s Full Self-Driving for highways and city streets.