The recent rally in Tesla shares prices in a bump to demand for the electric vehicle maker's cars after their prices were cut, according to UBS.
Analyst Patrick Hummel downgraded the stock to underweight from neutral while raising his price target by $50 to $270 per share.
"We think the recent strong share performance fully reflects the strong demand response seen after the price cuts, as well as a solid execution in 2024," Hummel said in a note to clients Monday.
TSLA YTD mountain Tesla's monster 2023 Hummel said that the demand boost following the cuts is now accurately reflected in the share value following its recent rally.
Tesla stock was down more than 1% in premarket trading Monday.
Persons:
Patrick Hummel, Hummel, Tesla, — CNBC's Michael Bloom
Organizations:
UBS