Tesla (TSLA) could face headwinds to its unit growth over the coming years amid a plateau in demand for electric vehicles and increasing competition in China, UBS Securities said in a Tuesday note.
The investment firm said results from its 2024 UBS Global EV survey showed that Tesla remains a leading battery electric vehicle brand consideration by 39% of the respondents globally but was overtaken by BYD in China. UBS said more respondents in the US indicated that Tesla would be their top battery electric vehicle choice but demand in the country appears “more stagnant.”
Survey results also indicated that consumers “may want more EV choices,” UBS added.
According to UBS, the survey results support its 2024 to 2025 delivery forecast for Tesla, which is below Street consensus.
UBS maintained its neutral rating on Tesla, with a price target of $160.