Tesla (TSLA) Investors finally took a breather after a long time, thanks to one of the biggest financial worldcompanies in the world.
USBis doing a brave callmoving Tesla stock’s rating from Sell to Hold just as markets prepare for the next earnings report. Market watchers want to know if the worst is behind Tesla or if more trouble lies ahead next year.
The moment also comes at a unique moment for electric vehicles and the global oil supply chain.
He Middle East is currently experiencing great turmoil. Iran and the United States are actively fighting for the opening of the Strait of Hormuz. This small piece of land is becoming critical to the global oil supply chain and is becoming a major flashpoint in the war.
The implications are significant, as gasoline prices in the United States surpass $4 per gallon, making this one of the most unpopular conflicts in modern history. As world leaders gather in Pakistan to end the conflict, something bigger is also happening in the background. For now, it looks like the worst might be over since the Strait of HormuzIt’s already open. But you never know what will happen next.
The need to purchase an electric vehicle is also quietly increasing.
Rising fuel costs in 2026, driven by global instability, are forcing American consumers to take the plunge once again, and data shows a 12% jump in used electric vehicle sales thanks to the crisis.
This represents a unique tailwind for Tesla.
The electric vehicle giant is already dealing with slow inventory turnover, costs are rising, and investors don’t know what to do next.
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“The levels more equitably balance near-term demand challenges,” Joseph Spak, UBS analyst he said, pointing to softer Electric vehicle sales and higher spending.
What that simply means is that TSLA’s stock price is already reflecting the bad news.
Now what investors are watching is whether the latest crisis will provide an unexpected boost to TSLA stock.
Tesla’s recent struggles haven’t gone away; UBS simply believes that investors are now fully aware of this.
The electric vehicle giant already faces many obstacles. Issues include lower demand for vehicles and higher capital costs related to robotaxis and humanoid robots. These investments are crucial to Tesla’s long-term plan, but they are also hurting short-term profits and putting pressure on margins.
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Markets are having a hard time ignoring these risks.
Tesla shares have been falling for eight weeks in a rowand since the company reported its fourth-quarter earnings in late January, it has lost 18% of its value. During that period, expectations have changed a lot. Analysts have lowered their predictions taking into account higher spending.
But UBS doesn’t blink.
Instead, Spak’s updated view reflects the stock’s current level as it more evenly balances Tesla’s near-term challenges. That includes risks such as rising costs, weaker demand and high capital spending for robotaxis and humanoid robots.
That last part is a major point of tension for Tesla fans and investors.
Tesla’s car business is in trouble for a while. To counteract the situation, the electric vehicle giant, for some time now, has been investing money in future bets that may take years to bear fruit. For bulls, this is why they love Tesla. For bears, that’s why you have to stay away.
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Spak is sitting in the middle of this discussion.
You’re not telling investors to buy stocks. But he also doesn’t see enough downsides to maintain the Sell rating for tesla.
The most important long-term thesis is based on the applications of artificial intelligence, especially robotaxis and robotics. That’s one of the main reasons UBS still believes Tesla is worth about 1.6 trillion dollars in a completely diluted base.
In other words, this isn’t really a decision about Tesla’s current car sales; It’s more of a reminder that Wall Street still believes the company’s future may depend more on software, autonomy and artificial intelligence than on unit deliveries alone.
Wall Street as a whole remains cautious. About 45% of analysts say Tesla is a good buy, lower than the average S&P 500stocks.
Tesla’s outlook is changing as energy markets adjust. Photo by Bloomberg at Getty Images
Tesla’s upcoming earnings report is one of the most important for the electric vehicle giant in recent memory.
People no longer judge the company simply as an electric car manufacturer. Rather, it stands at the crossroads of two very different stories: one about an automotive sector that is mature and has genuine demand problems, and the other about AI, which is still growing rapidly but has yet to fully materialize.
That bilateral identity makes it difficult to determine how much it is worth.
On the one hand, lower margins and higher expenses are real concerns about how things will go in the near future. On the other hand, the possibility of robotaxis and AI-powered services keeps the long-term optimistic arguments alive.
The UBS update does not resolve the argument; he simply recognizes it.
Stock down 22% Year to date despite long-term gains
USB updates to Holdciting balanced risk/reward
Demand for electric vehicles remains a short-term concern
AI and robotaxis remain fundamental for long-term valuation
April 22 Earnings Expected to Show Modest Growth
For investors, the conclusion is simple.
Tesla is no longer a single-story stock; has multiple growth opportunities. The company is going through a lot of change, and until the auto business stabilizes or the AI ​​vision becomes a reality, things are likely to remain unsettled.
However, there is hope for the future. Aside from the initiatives Tesla is taking, the Middle East crisis clearly underscores why American consumers need to switch to electric vehicles sooner rather than later.
That might be all the advantage Tesla needs for now.
Related: Tesla just pulled off a surprise with an electric vehicle that no one saw coming
This story was originally published by TheStreet on April 18, 2026, where it first appeared in the Automotive section. Add TheStreet as a preferred source by clicking here.
