UBS downgraded Tesla stock from a ‘Neutral’ to a ‘Sell’ rating on Friday, warning that expectations for the EV giant’s core automotive business are deteriorating and its AI investments may not pay off.
“While TSLA is investing heavily in AI and the tech is making progress, investment is costly, pace of improvement may slow and the payoff is long dated,” analyst Joseph Spak wrote in a note to clients. “Given the lack of visibility and the risk that growth opportunities materialize on a longer time horizon (or not at all)...[we] downgrade to Sell.”
