
UBS analysts downgraded Tesla's stock from neutral to sell, expressing concerns that it has risen "too much, too soon" due to optimism surrounding its artificial intelligence plans. They warned that the stock price is vulnerable if market enthusiasm for AI diminishes and highlighted the lack of visibility and risk of growth opportunities materializing over a longer time horizon, if at all.

Tesla's stock fell by 2% during premarket trading on Friday, following a downgrade by UBS analysts who cited concerns that the company's stock value had risen too quickly due to AI hype rather than its core auto business.