Tesla Stock Rises on UBS Upgrade, But Challenges Remain

UBS analyst sees long-term upside for Tesla despite near-term headwinds.

Apr. 14, 2026 at 6:37pm

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An extreme close-up of Tesla's electric vehicle production machinery, capturing the intricate mechanical components and assembly processes that drive the company's manufacturing capabilities.Tesla's robust manufacturing infrastructure powers the company's electric vehicle production, showcasing the industrial might behind its market-leading position.Austin Today

Tesla Inc. (NASDAQ:TSLA) shares are trading higher on Tuesday after UBS upgraded the stock to Neutral from Sell while maintaining its $352 price target. The analyst cited Tesla's current valuation better reflecting its near-term challenges, such as weakening EV demand, rising costs, and slow progress on robotaxi and Optimus programs. However, UBS expects eventual progress on these initiatives and continues to view Tesla as a leader in physical AI.

Why it matters

Tesla's stock performance is closely watched as the company is a major player in the electric vehicle market. The UBS upgrade and analyst commentary provide insight into the current state of Tesla's business and the factors impacting investor sentiment around the stock.

The details

UBS analyst Joseph Spak noted that Tesla has struggled recently due to a variety of factors, including weakening EV demand, rising costs, a first-quarter energy shortfall, and slow progress on its robotaxi and Optimus programs. However, the analyst said UBS expects eventual progress on both initiatives and continues to view Tesla as a leader in physical AI. On the core auto business, UBS forecasts 1.6 million deliveries in 2026, roughly flat year-over-year, and expects deliveries to grow at a 7% CAGR to around 2 million by 2030 — well below Wall Street's 3 million estimate. Spak called Tesla's robotaxi program a key variable, flagging concerns about the slow pace of expansion in Austin. On the Optimus humanoid robot, Spak said the program will likely take longer than expected, with UBS expecting 5,000 units in 2027 and 30,000 by 2030, and warned of possible supply-chain challenges due to reliance on Chinese components.

  • UBS upgraded Tesla to Neutral from Sell on April 14, 2026.

The players

Joseph Spak

UBS analyst who upgraded Tesla to Neutral and maintained a $352 price target.

Tesla Inc.

An American electric vehicle and clean energy company that designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels, and related products.

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What they’re saying

“UBS expects eventual progress on both initiatives and continues to view Tesla as a leader in physical AI.”

— Joseph Spak, UBS Analyst

What’s next

Investors will be closely watching Tesla's upcoming earnings reports and progress on its robotaxi and Optimus programs to gauge the company's long-term potential.

The takeaway

Tesla's stock performance remains a subject of debate, with the company facing near-term challenges but still seen as a leader in electric vehicles and physical AI. The UBS upgrade highlights the mixed outlook, as the analyst expects eventual progress on key initiatives but also notes concerns about the pace of expansion and potential supply chain issues.