Tesla Inc. (TSLA) saw a 1.6% drop in premarket trading after a downgrade from UBS Group AG, citing concerns about the stock's rapid rise fueled by optimism over its artificial intelligence plans. The electric carmaker's 11-day winning streak came to an end with an 8.4% drop as it postponed its robotaxi unveiling. UBS analysts warn that if market enthusiasm for AI wanes, it could impact Tesla's valuation. The company's stock trades at over 80 times one-year forward estimated earnings, leading analysts to question growth opportunities. UBS raised their 12-month target on the stock to $197, implying an 18% decline. With mounting concerns over AI valuations and a subdued outlook for electric cars, Tesla faces challenges despite its recent rally. Investors may need to see a significant opportunity to justify a buy rating.