Tesla investors are watching closely after a new report from UBS raised concerns about the company’s near-term delivery outlook, even as the bank maintained a buy rating on the stock.
UBS lowered its price target on Tesla to $235 from $266 and kept its buy rating, according to a report cited by investors. The firm also reduced its delivery estimates for 2025 and 2026, pointing to softer demand and weaker short-term momentum than previously expected.
The revised view reflects growing caution around Tesla’s core auto business. UBS said it now expects Tesla to deliver 1.7 million vehicles in 2025 and 1.9 million in 2026, both below earlier forecasts. The bank noted that while Tesla still has long-term growth potential, near-term fundamentals appear less supportive than before.
Tesla shares have been volatile as investors weigh the company’s vehicle pricing strategy, production trends, and the pace of adoption for newer products. Lower delivery expectations can matter because vehicle sales remain the main driver of Tesla’s revenue and operating performance.
At the same time, Tesla continues to attract attention for its broader technology ambitions, including autonomy, robotics, and energy storage. For investors, the question is whether those future opportunities can offset pressure in the core EV business.
UBS’s updated forecast is a reminder that Wall Street is still divided on Tesla’s path from here. Bulls continue to focus on Tesla’s innovation and long-term scale, while bears are pointing to slowing growth and margin pressure in the near term.