UBS Cuts Price Target on Tesla (TSLA), Downgrades GM

UBS today lowered its price target on Tesla (TSLA) to $190 from $225 while reiterating a Sell rating on the shares.

The Swiss bank also downgraded GM (GM) to Neutral from Buy.

Why UBS Has Become More Bearish on TSLA

Although many institutions have lowered their estimates for Tesla this year, the estimates may be cut further after Elon Musk’s automaker reports its first-quarter results, UBS warned. The company’s energy business could be negatively impacted by the high tariffs that the U.S. has imposed on China, UBS believes.

Why UBS Downgraded GM

Based on the current level of tariffs, they may cost the automaker $5 billion annually, UBS estimated. Additionally, the duties will have a negative impact on demand for the firm’s vehicles, the bank indicated.

The Swiss bank slashed its price target on GM to $51 from $64.

The Recent Price Action of TSLA Stock and GM Stock

In the last month, TSLA has gained 6.3%, while it has dropped 35% in the last three months.

Meanwhile, GM has fallen 8% in the last month and has given back 15% in the last three months.

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READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.