UBS issued contrasting analyst ratings for two major automakers on April 14, 2026, highlighting divergent paths within the sector. The bank upgraded Ford Motor Company (F) from Hold to Buy with a price target of $15, implying roughly 20% upside from its price of around $12.47. Analyst Joseph Spak argued the market is underpricing Ford's 2027 earnings per share (EPS) by about 16%, with a forecast of over $2 and a longer-term path toward $3 EPS. He cited a more favorable U.S. regulatory backdrop, a pragmatic EV strategy, growing battery energy storage opportunities, and a focus on higher-margin software as key pillars. Spak also viewed recent headwinds from gasoline and aluminum costs as temporary and overdone, expecting them to fade in the second half of 2026. Ford stock responded with a 4.4% jump in early trading following the upgrade.
Concurrently, UBS raised its rating on Tesla (TSLA) to Neutral from a previous Sell, setting a $352 price target. Spak noted Tesla stock reflects near-term demand pressure and elevated investments but holds a large long-term opportunity in physical artificial intelligence. He cited softer EV demand, rising capital spending, a Q1 2026 energy shortfall, and slower progress on robo-taxi and Optimus projects as current weights. UBS estimates Tesla's 2027 EPS at $2.33, slightly below the consensus of $2.47.
The broader Wall Street consensus for Tesla remains mixed. The average 12-month price target from analysts is $402.29, implying about 14% upside, but individual targets vary wildly from $25.28 (GLJ Research's Sell rating) to $600. Morgan Stanley maintained an Equal Weight rating with a $415 target, emphasizing Tesla's data advantage for autonomy, while JPMorgan kept a Sell rating with a $145 target, warning of significant valuation and execution risks.
