UBS believes that Tesla shares are attractive after a significant drop in price. The stock is now more appealing than it was last year and the future of the electric car maker looks brighter. UBS upgraded Tesla from neutral to “time to act boldly”, and raised its price target for the stock to $1,100. It reiterated its $1.100 price target, which implies a 51.6% upside over Wednesday’s closing stock price. Patrick Hummel, UBS research analyst said that “we believe the operational outlook to be stronger than ever” in a note. We expect Tesla’s vertical integration of semiconductors, battery and software to lead to superior absolute growth as well as profitability over the next few years. Tesla shares are now down by over 31% and have fallen more than 41% from their highs in November 2021. Stocks that promise high-flying earnings and growth have been struggling this year due to rising interest rates, as well as fears of a possible recession. UBS stated that Tesla’s recent pullback provides an “attractive entrance point”, with Tesla close to historical lows in terms of price-to earnings. UBS also believes in Tesla’s operational momentum. The company has a large order backlog, and there are two additional factories in Texas and Germany. The firm also believes Tesla’s supply chain capabilities are an undervalued asset. “The market still underestimates how much better Tesla will fare vs. competitors in terms of growth & profitability,” Hummel said. UBS does not worry about Tesla CEO Elon Musk cutting 10% of his salaried staff. They say the plans do “not change this long-term view, in our opinion.” The premarket saw Tesla rise by 3% Wednesday. —CNBC’s Michael Bloom contributed reporting.