Tesla (TSLA.US) has been transitioning from an EV company to a physical AI company over the past few years, UBS issued a research report saying. However, its spending does not resemble that of an AI company.

Over the past 3 years, the Company's average capital expenditure was about US$10 billion annually, and it is expected to double to US$20 billion in 2026, pushing the Company into a cash burning mode. The broker anticipated a cash burn of US$6 billion in 2026, excluding a US$2 billion investment in xAI.

UBS raised its 2026/ 2027 EPS forecasts from US$1.74/ US$2.04 to US$1.93/ US$2.34 each, and elevated its target price from US$307 to US$352, with rating kept at Sell.
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AASTOCKS Financial News
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