UBS analysts have attributed Tesla's recent stock surge, which has added approximately $350 billion to its market capitalization, to 'animal spirits' and market momentum rather than fundamental improvements in the company's business. Joseph Spak from UBS maintained a SELL rating on Tesla shares while adjusting the price target upward to $226 from a previous target of $197. The analysts caution that the rise is driven more by market exuberance following the recent elections than by any substantial change in Tesla's operational fundamentals. Additionally, Tesla's stock experienced a decline of 3.96% amid news that California has excluded the company from electric vehicle tax credits. CEO Elon Musk has also hinted at an upcoming significant update to the Full Self-Driving (FSD) software, while the company is reportedly implementing a year-end price cut for the Model Y in China.