UBS Raises Tesla Price Target to $215

UBS analyst Joseph Spak raised the price target on Tesla (NASDAQ: TSLA) to $215 (from $190) while maintaining a Sell rating.

“With Tesla launching their first robotaxi service in Austin, investor focus on the autonomous ride-hailing opportunity is very high. As such, we take a look at the opportunity.

Net, if all goes according to plan (technology, regulatory, building and scaling a network, etc.) the opportunity can be significant – potentially a 2.3mm vehicle fleet by 2040 generating ~$200bn in revenue.

Recall, Elon Musk indicated that autonomy is one of two (along with humanoid robots) main drivers of the stock’s long-term value.

While Tesla appears to be well positioned, we believe the opportunity is already priced into the stock.

We built out our robotaxi model and believe the opportunity is worth ~$99/share which when considering other parts of TSLA’s business, still leaves us cautious on TSLA’s overall valuation.”

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