
Zigres
UBS has increased its price target for Tesla (NASDAQ:TSLA) from $190 to $250, citing growing investor enthusiasm around the company’s autonomous ride-hailing ambitions. However, the firm maintained its Sell rating, warning that much of the potential upside is already priced into the stock.
Tesla’s recent robotaxi pilot launch in Austin has fueled speculation about its long-term prospects in self-driving mobility. UBS estimates that under an ideal scenario—where Tesla successfully scales its technology, secures regulatory approval, and builds a large-scale network—the company could operate a 2.3 million-vehicle fleet by 2040, generating $200 billion in annual revenue.
In its analysis, UBS valued Tesla’s robotaxi segment at $99 per share but cautioned that even with this projection, the stock remains overvalued. The firm argues that Tesla’s current share price already reflects much of its future growth potential, including advancements in full self-driving (FSD) technology and humanoid robotics (Optimus).
Analysis & Opinion
While Tesla continues to dominate headlines with its futuristic ventures, UBS’s skepticism highlights a key concern: execution risk. The robotaxi market is still in its infancy, facing regulatory hurdles, safety concerns, and stiff competition from Waymo, Cruise, and traditional automakers.
Moreover, Tesla’s valuation—trading at a premium compared to legacy automakers—relies heavily on speculative growth. If FSD development stalls or robotaxi adoption lags, the stock could face a significant correction. Investors should weigh Tesla’s innovation potential against its lofty valuation before betting on its long-term success.
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