Al Root
Tesla investors got some needed good news on Tuesday with a Wall Street upgrade ahead of next week's earnings reports. Yes, the car business is struggling, but AI progress will come.
Tuesday, UBS analyst Joseph Spak upgraded Tesla stock to Hold from Sell. His price target stayed the same at $352 per share. Currently, levels "more evenly balance" near-term demand challenges, including higher spending to roll out robo-taxis and build robots, along with lower EV sales.
Eventually, Spak seeks progress on AI-applications, including those robo-taxis and robots, which is why he values the company at roughly $1.6 trillion based on fully diluted shares outstanding.
It isn't a bullish call to buy the stock, but it helps. Tesla stock was up 1.8% at $358.89 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.1% and down 0.1%, respectively.
Coming into Tuesday trading, Tesla stock was down 22% so far this year and up 40% over the past 12 months. Shares are mired in an eight-week losing streak and off 18% since the company reported fourth-quarter earnings in late January. Falling earnings estimates and rising capital spending have weighed on investor sentiment.
The company has also been slow to expand its robo-taxi service, launched in Austin, Texas, in June. CEO Elon Musk expects Tesla robo-taxis to be in "dozens" of cities in 2026, but for now, Austin is the only city with commercial operations.
Investors will hear more about AI and robo-taxis when Tesla reports first-quarter numbers on Apr. 22. Wall Street is looking for earnings per share of 38 cents. A year ago, Tesla reported first-quarter earnings of 27 cents. Higher deliveries is one reason earnings are expected to rise. Tesla delivered about 358,000 cars in the first quarter of 2025, up from 337,000.
Overall, 46% of analysts covering Tesla stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 typically ranges from 55% to 60%. The average analyst price target for Tesla stock is about $405.
An upgrade to Hold doesn't change the Buy-rating ratio. It changes the Sell-rating ratio. Now, 15% of analysts covering Tesla stock rate shares Sell, about double the rate for stocks in the S&P 500.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
April 14, 2026 07:00 ET (11:00 GMT)
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