Shares of Tesla ( TSLA ) are sliding after the EV maker was downgraded to sell by UBS, believing the shares got “too high, too soon” on its AI plans.
Morning Brief hosts Sienna Smith and Brad Smith broke the call amid reports that Tesla plans to push back its Robotxy debut.
For more expert insights and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Melanie Riehl.
Video transcript
We're looking at Tesla shares this morning, with the stock falling after U BS analysts downgraded the EV manufacturer.
The firm believes Tesla's share price is too high, too early on its AI plans here, shares are still down as we've opened the trading session, about 2.5% over the past five days. Saw more slipping. More than 6.5 percent
And besides, there are also reports of robo-taxi day possibly being pushed back.
Yeah, it's, it's a valuation call here from UBS analyst Joseph Bach and he's talking about the fact that if the market's enthusiasm for AI wanes, it Here Tesla's multiple could have an impact and is making a case. Given the lack of visibility and the risk that growth opportunities grow long-term, it is then bracketed or not at all.
And I think that's a big question that a lot of analysts are asking themselves this morning.
There was a lot of excitement around the name RoboTax.
Exactly what it will look like.
How big a driver was the catalyst that would be for the stock when we initially expected it to happen next month.
Now, there are reports that it has been delayed.
Of course, this absolutely calls into question.
A lot of the excitement we've seen in the stock over the past 5 to 6 weeks, even if it's definitely gotten a little ahead of itself.
And, and it's important to point out, Joseph Sachspack is not alone in making this call.
A number of analysts here probably took a slightly more bearish tune over the past 24 hours when this was questioned.
That's exactly what that near-term could look like here for Tesla.
And we could potentially see a little more volatility on the back of the massive surge we've seen since the June launch of Elon wanting to be thought of as an AI company.
He was very clear about what was said on a recent call and gave credit to Cathy Wood saying she said it best.
Like really, we should think like an AI or robotics company.
If you only value Tesla as an auto company, you're basically just OH and asking the wrong question.
A correct answer is impossible.
He's kind of rambling but eventually he gets to the point where he says that Tesla is going to address autonomy and AI is a huge part of that as well as robotics.