Tesla Stock Price
The company logo is pictured on a Tesla Model X electric car in Berlin (Photo: Reuters / Fabrizio Bensch)

While a lot of investors who bet against Tesla's rise have been burnt, analysts at UBS Group AG still think that the company's stock is a clear sell. The sell rating for the US electric company's stock strangely still remains despite analysts at the Swiss investment bank already doubling the Tesla's price targets.

With the continued rise in Tesla's stock prices, which has already doubled since the beginning of October last year, UBS analysts have now increased their price targets to $410 per share. This is quite a big jump from the bank's original $160 price target for the particular stock.

To back its price target upgrade, UBS mentioned in a statement that it still continues to have a bullish outlook on Tesla, albeit a little more conservative compared to other expectations. The company stated that it estimates that Tesla will likely sell around 800,000 electric vehicles with a 10 percent operating up to 2022.

UBS analytical team leader Patrick Hummel mentioned in a published report that his team's target prices at based on slightly higher assumptions. Current price targets are based on Tesla's selling more than 1.4 million cars with an 11 percent margin. Hummel explained that Tesla would need to perfectly execute its plans in order to hit or exceed the team's expectations. This will mostly rely on the company's ability to meet demand in a timely manner and to release new competitive electric vehicles amid increasing competition from abroad.

The bank's conservative outlook and price targets, which is around 28 percent below Tesla's closing price of $569.56 on Wednesday, is based on existing uncertainties involving the company's development execution and the upcoming removal of electric vehicle tax credits. Pummel explained that these factors simply cannot be ignored. The bank still believes that Tesla could potentially become the most profitable original equipment manufacturer (OEM) in the world but it would have to overcome difficult challenges before it gets there.

So far, Tesla has managed to surprise analysts with its performance in the past quarters. The company's stock prices initially surged back in October following the release of its better-than-expected third quarter earnings. As of Wednesday, the company's market valuation has exceeded the $100 billion-mark.

Tesla's currently has a total of nine buy ratings, 17 sell ratings, and 11 hold ratings. The average price target for the particular stock is hovering around $370 per share. The most positive forecast for the company's shares predict that it could reach as high as $960 per share by 2021.