UBS Raises Tesla Shares, Limited Expectations for Robotaxi Scaling

UBS upgraded its rating on Tesla (TSLA) and set a new price target after a positive assessment of the company’s growth potential. The analyst team, taking into account Tesla’s recent performance and cash flow, moved to a "Buy" recommendation. The upgrade was driven by Tesla’s leading position in the electric‑vehicle market and its technological innovations, but UBS’s report emphasized that no significant progress is expected in scaling the robotaxi program at this time. The firm noted that the robotaxi concept remains in early stages and operational challenges will persist. UBS highlighted that for the robotaxi to become commercially viable, substantial steps are needed in infrastructure, regulation, and consumer acceptance. In this context, the company foresees limited short‑term contribution from the robotaxi strategy, despite its long‑term growth potential. For investors, UBS’s new price target signals the need to continue monitoring Tesla’s market performance. The firm cautioned that a delay in expected progress on robotaxi scaling could increase volatility in the share price. This is not investment advice.