UBS pessimistic about Tesla as global consumers turn away: stock price may drop 47%

Zhitong
2025.05.29 06:43
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A UBS survey shows that due to CEO Elon Musk's excessive involvement in politics, Tesla's brand appeal in global markets has declined, maintaining a "sell" rating with a target price of $190, representing a 47% downside from the closing price on May 28. The survey indicates a decrease in the proportion of car buyers for Tesla in major markets, especially in the United States and Europe. Tesla's delivery volume in the Chinese market has decreased by 31.6% compared to last year, facing fierce competition from rivals such as BYD

According to the Zhitong Finance APP, a survey by UBS shows that due to CEO Elon Musk's excessive involvement in political affairs, Tesla's (TSLA.US) brand appeal has declined in major global markets. It is reported that UBS maintains its "sell" rating on Tesla, with a target price of $190. This target price represents a nearly 47% downside from Tesla's closing price on May 28.

The survey conducted by UBS with 10,500 participants shows that globally, the proportion of electric vehicle buyers who considered Tesla as their preferred choice last year was 18%, down from 22% in 2023. By major markets, in the United States, this proportion fell from 38% to 29%; in Europe, it dropped from 20% to 15%; in China, it decreased from 18% to 14%.

UBS stated: "In China, competition is extremely fierce, and Tesla is no longer seen as a technology leader. In Europe, we believe Musk's political involvement may have harmed the brand. Overall, we are cautious about Tesla's stock."

UBS pointed out that Tesla's product performance and brand recognition in the mainland Chinese market have been surpassed by BYD, while Xiaomi is also rapidly eating into Tesla's market share. However, the report did not disclose specific market share data for BYD and Xiaomi. According to data provider CnEVPost, Tesla's deliveries in the Chinese market in the first three months of this year fell by 31.6% compared to the fourth quarter of last year, totaling 134,607 vehicles.

Independent analyst Gao Shen stated: "Chinese automakers can produce smarter models at a lower cost than Tesla's Model 3 and Model Y. The rise of domestic brands has largely diverted purchasing interest away from Tesla."

Tesla is also facing fierce competition from BYD in the European market. According to research firm JATO Dynamics, BYD surpassed Tesla for the first time in the European market last month, becoming the leader in pure electric vehicle sales—In April, BYD sold 7,231 pure electric vehicles in Europe, a year-on-year increase of 169%; during the same period, Tesla's sales fell by 49% year-on-year to 7,165 vehicles

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