Tesla's price target has been increased by UBS to $226 from $197, with a Sell rating on the shares.
The surge in Tesla's stock since the U.S. election has contributed over $350 million to its market capitalization.
While recent policy proposals could potentially benefit Tesla, the removal of EV consumer tax credits may not necessarily boost demand for U.S. electric vehicles.
UBS acknowledges improvements in Tesla's Full Self-Driving technology but asserts that it is not yet ready for widespread robotaxi deployment.
The recent rise in Tesla's stock price is believed to be driven by market momentum rather than fundamental changes in the company's outlook.