Tesla shares climb more than 6% after analyst upgrade, software updates

Tesla's shares experienced a significant boost, climbing more than 6% on Wednesday, following an upgrade from UBS analysts who shifted their rating from 'sell' to 'hold.' They also raised the price target by approximately one dollar, now set at $352. This change in perspective marks a notable turnaround for UBS, with analysts led by Joseph Spak highlighting that Tesla's plans for a new, more compact SUV represent a 'welcome development.' They believe that the current offerings of Tesla's light-duty vehicles are too limited, which has sparked anticipation for the upcoming model. Tesla's current lineup includes the Model 3 sedan, the Model Y SUV, and the distinctive Cybertruck. In a strategic shift, the company has halted sales of its flagship Model S and X vehicles to repurpose part of its Fremont factory for the production of its humanoid robot, known as Optimus, which is currently under development. The stock's rise coincides with the rollout of Tesla's Spring software update, enhancing in-vehicle features and making it simpler for customers to subscribe to the premium Full Self Driving (Supervised) option. Additionally, drivers can now access statistics on their touchscreens to monitor usage of these features, creating a more interactive driving experience.