UBS analyst Joseph Spak weighed in on the two U.S. automotive leaders, Ford (F) and Tesla (TSLA). The analyst upgraded Ford stock to Buy from Neutral with a $15 price target, while raising Tesla to Neutral from Sell with a $352 target. While both stocks were upgraded, the analyst is more positive on Ford heading into 2027.
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New trading tool for TSLA bearsFollowing the upgrades, shares of both companies moved higher in pre-market trading on Tuesday, with Ford up 3% and Tesla gaining about 2% at the time of writing.
Why UBS Is More Positive on Ford
Spak expects Ford to deliver stronger earnings, with the company projected to generate about $2.08 in EPS by 2027, which is 17% above the Wall Street consensus. He also sees further upside beyond that, with earnings potentially rising closer to $3 per share over time.
The outlook is supported by a more practical EV strategy, a favorable U.S. regulatory backdrop, and growth in higher-margin businesses like Ford Pro software. He also pointed to emerging opportunities in battery energy storage as an added tailwind.
Importantly, Spak believes recent concerns around higher costs, including aluminum prices, are “overdone” and unlikely to impact earnings as much as feared.
Tesla Stock Upgraded but Valuation Remains “Lofty”
While Tesla was upgraded to Neutral, Spak said the bearish case has largely played out, with the stock now reflecting a balance between near-term demand challenges and long-term opportunities.
He highlighted Tesla’s potential in areas like robotaxis and humanoid robots but noted that progress has been slower than expected. At the same time, higher costs and heavy spending continue to weigh on the near-term outlook.
Spak also warned that Tesla trades more on sentiment than fundamentals, noting the stock is valued at around 150x earnings and already prices in most of its expected 2027 earnings, leaving limited room for upside. With such a rich valuation and ongoing investment needs, he expects the stock to remain volatile.
Ford vs. Tesla: Which EV Stock Offers Higher Upside, According to Analysts?
Using TipRanks’ Stock Comparison Tool, we compared Ford and Tesla to see which EV stock analysts currently favor. Both stocks carry a Hold consensus rating and offer similar upside based on average price targets. Tesla’s price target of $402.29 implies about 14% upside, while Ford’s average price target of $13.96 suggests roughly 15% upside, giving Ford a slight edge in expected returns.
