A recent UBS survey highlights a declining global interest in Tesla (TSLA, Financial), maintaining a "sell" rating with a price target of $190, suggesting a potential 48% downside from its current price of about $363. The 2025 Global Electric Vehicle Consumer Survey reveals that the share of consumers considering Tesla has dropped from 39% to 36%, with its position as the top choice for electric vehicles falling from 22% to 18%.
Despite these challenges, Tesla's stock saw a nearly 7% rise, attributed to delays in US tariffs on Europe and CEO Elon Musk's renewed focus on the company. Tesla still holds a 48% market share in the US but faces increasing competition in China and Europe. In China, its preference rate fell from 18% to 14%, overshadowed by BYD and Xiaomi. In Europe, the consideration rate for Tesla dropped to 33%, overtaken by luxury brands like Audi and BMW.
UBS points out a disconnect between Tesla's autonomous driving feature pricing and consumers' willingness to pay, limiting growth potential in software services. Additionally, Tesla's pricing strategy varies globally, with competitive challenges from local brands, particularly in China.
UBS remains cautious, reiterating a $190 price target for Tesla, highlighting the slowing global demand for electric vehicles and intensified competition. While there's optimism around Tesla's Robotaxi and humanoid robot ventures, the main electric vehicle business faces significant hurdles.
