Despite being downgraded from Neutral to Sell by UBS analysts, shares of Tesla (TSLA) are on the rise, with the firm raising its price target on the EV maker to $197 per share. Yahoo Finance autos reporter Pras Subramanian discusses the analyst note and its implications for Tesla's stock. UBS highlighted the challenges in justifying Tesla's valuation, citing the high costs of investments in AI and slow progress with uncertain long-term payoffs. While the stock initially dipped in pre-market trading, it has since rebounded along with the overall market and other EV stocks. UBS's concerns about the valuation of Tesla's non-auto businesses, such as energy and robotics, have raised questions about the sustainability of the current stock price. Despite the downgrade, investors are closely monitoring Tesla's performance and the potential impact on its stock moving forward.