UBS Group AG analysts led by Joseph Spak cautioned that Tesla’s stock surge post-election is driven by 'animal spirits/momentum' rather than fundamental improvements in the business. They maintain that while some policy proposals could benefit Tesla, significant negatives like removing consumer tax credits could force the company to cut prices. Spak emphasized the need for caution, as the actual financial landscape of Tesla has not seen meaningful enhancements that would justify the stock's dramatic rise.
In their analysis, analysts noted, 'Removing consumer tax credits could force Tesla to have to cut prices', signaling that while market sentiment swings positively, practical realities could challenge profitability. Furthermore, Spak observed that despite a more favorable regulatory environment potentially fostering AI ventures, Tesla remains unprepared for a quick adaptation with a robotaxi service that can capitalize on new rules.
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