Tesla shares are set for a weekly loss despite a Friday analyst upgrade.

On Friday, DZ Bank raised its rating on Tesla from Sell to Hold, improving the stock’s sell rating ratio but not offering a new optimistic outlook. Around 13% of analysts now rate Tesla as a Sell, nearly twice the S&P 500 average. Only 44% rate it a Buy, compared to the usual 55% to 60% for large-cap stocks. Since the earnings report on Wednesday, the average analyst price target has fallen by about $7.

Tesla’s first-quarter results contributed to this week’s declines. While the company exceeded earnings expectations, it updated its capital spending forecast to $25 billion from $20 billion. This increase is allocated toward building AI infrastructure for Tesla’s robotaxi and humanoid robotics projects, which have not yet contributed significant revenue or profits. Stakeholders continue to monitor progress in commercializing AI, especially as demand for electric vehicles changes.

U.S. sales of all-electric vehicles declined 27% in the first quarter compared to last year. This decrease is partly associated with the conclusion of the federal $7,500 EV tax credit in September. As such, there is increased attention on Tesla’s AI initiatives. The company’s management has mentioned this transition, though it has not yet been reflected in the reported financial results.

Tesla shares have fallen in 11 of the last 13 weeks, losing about 16% during that time. This follows a short break in an eight-week losing streak last week. The stock is down around 17% so far this year, but it is still up about 44% over the past twelve months.