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Tesla (TSLA.US) weakens despite the market, UBS says the company's rally is driven by "animal spirits" rather than fundamentals

Market IntelMonday, Nov 25, 2024 10:30 am ET
1min read

Tesla (TSLA.US) opened higher on Monday but weakened against the trend, falling over 1%, and has surged nearly 40% in the month, trading at $348.37. On the news, analysts at UBS said the stock's surge since the US election was more about the market's bullish mood than any actual improvement in the company's business. The analysts, led by Joseph Spak, wrote that while policy proposals that could benefit Tesla have emerged since Donald Trump's election, they are not necessarily good news for the company. For example, Spak wrote that the elimination of the tax credit for buying electric vehicles could force Tesla to lower its prices. He also noted that while a more favorable regulatory environment under Trump could benefit artificial intelligence companies, including self-driving cars, Tesla does not yet have a self-driving taxi that could take advantage of relaxed rules. "The stock's rise has been driven mainly by animal spirits/momentum," Spak said in the report. He maintained a sell rating but raised his target price to $226 from $197.

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Versace__01
11/25
FOMO got me heavy in $TSLA, no regrets
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Solarprobro4
11/25
Animal spirits driving $TSLA? That's just market FOMO, fam. If fundamentals don't kick in, we might see a pullback. Keep your stop-loss tight and your eyes on those fundamentals.
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ServentOfReason
11/25
UBS downgrade, watch out for a dump
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Running4eva
11/25
Spak sounds like a buzzkill, but with a stock like $TSLA, fundamentals vs. momentum is always a gamble.
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Big-Decision-1458
11/25
Policy shifts ain't a guaranteed win for Tesla. If tax credits go poof, Musk might need to rethink pricing. I’m holding a bit of $TSLA but keeping an eye on those regulatory waves. Diversification feels key.
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Shot_Ride_1145
11/25
Riding the hype train till $TSLA crashes
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InjuryIll2998
11/25
UBS calling it like they see it. Fundamentals vs. animal spirits feels like a classic meme stock debate. $TSLA’s moves could be volatile with those tax credit changes looming. Gotta watch that technical side, folks. 🤔
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