Tesla (NASDAQ:TSLA) stock is falling on Monday after the electric vehicle (EV) company’s shares were hit with a downgrade from UBS analyst Patrick Hummel.
The downgrade from UBS has the firm dropping TSLA stock from a “neutral” rating to an “underweight” rating. To put that in perspective, the analyst consensus rating for TSLA shares is a “hold” based on 36 opinions.
Despite the downgrade, Hummel increased his price target for TSLA stock from $50 per share to $270 per share. That represents a potential upside of 3.8% for the stock. It’s also above the analyst consensus price prediction of $227.30 per share.
What’s Behind the TSLA Stock Downgrade
Here’s what the UBS analyst said about Tesla in a note to clients obtained by CNBC:
“We think the recent strong share performance fully reflects the strong demand response seen after the price cuts, as well as a solid execution in 2024 […] We continue to see Tesla globally leading the race to affordable electric and autonomous mobility, but on a 1-year view, risk/reward looks balanced.”
As far as stock movement goes today, some 16 million shares of TSLA stock have changed hands as of this writing. That’s still a far way off from the company’s daily average trading volume of about 137 million shares.
TSLA stock is down close to 1% as of Monday morning. However, shares are up 139% since the start of the year.
Investors seeking out even more of the most recent stock market news are going to want to keep reading!
We have breakdowns of all the latest stock market news traders need to know about on Monday! Among that is what has shares of AMC Entertainment (NYSE:AMC), AppHarvest (NASDAQ:APPH) and Kodiak Sciences (NASDAQ:KOD) stock on the move today. You can catch up on all of this news at the following links!
More Monday Stock Market News
- AMC Stock Alert: Judge Blocks APE Conversion Plan
- Why Is AppHarvest (APPH) Stock Down 43% Today?
- Why Is Kodiak Sciences (KOD) Stock Down 58% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
