00:00It's Benzinga, and here's what's on the block.
00:03Tesla shares dropped after UBS Group downgraded the stock from neutral to sell, citing concerns
00:07that optimism over Tesla's artificial intelligence plans has pushed the stock price up too quickly.
00:13UBS analysts said that if enthusiasm for AI declines, it could impact Tesla's valuation.
00:19They noted Tesla trades at over 80 times forward estimated earnings.
00:23The analysts raised their price target for Tesla to $197 from $147, implying an 18 percent
00:29decline from the previous day's close.
00:32Concerns are growing over the valuations of companies tied to AI technology, as seen in
00:36the recent sell-off of big tech stocks.
00:39Tesla is also facing a subdued outlook for electric vehicle sales.
00:42For all things money, visit Benzinga.com.
Comments