BNP Paribas Exane Upgrades Tesla (NASDAQ:TSLA) to Neutral

Key Points

• BNP Paribas Exane upgraded Tesla from “underperform” to “neutral,” while the broader analyst consensus remains “Hold” with an average price target of $417.68. Ratings remain divided, reflecting uncertainty around Tesla’s growth prospects and high valuation.
• Tesla beat quarterly EPS expectations, reporting $0.48 versus the $0.45 consensus, while revenue of $28.05 billion was essentially in line. However, profitability weakened as automotive revenue declined and spending on AI, robotics and autonomy increased.
• Tesla’s shares traded near $387.78, at a very high price-to-earnings ratio of approximately 358. The company’s ambitious FSD, Optimus and Cybercab plans offer potential catalysts, but reduced capital-spending guidance and execution, regulatory and timing risks remain significant concerns.

Tesla (NASDAQ:TSLA - Get Free Report) was upgraded by equities researchers at BNP Paribas Exane from an "underperform" rating to a "neutral" rating in a research note issued to investors on Thursday, MarketBeat reports.

Other research analysts have also recently issued reports about the stock. Mizuho lifted their price target on shares of Tesla from $450.00 to $460.00 and gave the company an "outperform" rating in a research report on Thursday. The Goldman Sachs Group restated a "neutral" rating on shares of Tesla in a research note on Thursday. Citigroup reaffirmed a "neutral" rating on shares of Tesla in a research note on Wednesday. UBS Group reissued a "neutral" rating and set a $425.00 target price on shares of Tesla in a research note on Thursday. Finally, Stifel Nicolaus set a $491.00 target price on Tesla and gave the company a "buy" rating in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, twenty have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $417.68.

Tesla Price Performance

Shares of NASDAQ TSLA traded up $1.31 during midday trading on Thursday, hitting $387.78. 8,597,291 shares of the company's stock were exchanged, compared to its average volume of 50,422,969. The business's fifty day moving average price is $362.72 and its two-hundred day moving average price is $377.16. Tesla has a 12-month low of $297.38 and a 12-month high of $498.83. The company has a current ratio of 1.94, a quick ratio of 1.55 and a debt-to-equity ratio of 0.09. The company has a market cap of $1.53 trillion, a price-to-earnings ratio of 357.98, a PEG ratio of 23.73 and a beta of 1.92.

Tesla (NASDAQ:TSLA - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. Tesla had a net margin of 3.67% and a return on equity of 3.82%. The company had revenue of $28.05 billion during the quarter, compared to analysts' expectations of $28.06 billion. During the same quarter in the prior year, the company earned $0.50 EPS. The firm's revenue was down .2% on a year-over-year basis. As a group, research analysts forecast that Tesla will post 0.71 EPS for the current fiscal year.

Insider Activity at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total transaction of $938,498.78. Following the transaction, the chief financial officer owned 25,972 shares in the company, valued at $9,353,296.36. The trade was a 9.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 19.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Tesla

A number of institutional investors and hedge funds have recently bought and sold shares of TSLA. Security National Bank of Sioux City Iowa IA acquired a new position in Tesla during the second quarter worth about $25,000. Friedenthal Financial boosted its stake in shares of Tesla by 66.7% during the 1st quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer's stock worth $28,000 after acquiring an additional 30 shares in the last quarter. Harborfront Financial Group LLC acquired a new position in shares of Tesla in the 2nd quarter worth $34,000. Montgomery Financial Services LLC purchased a new stake in shares of Tesla during the second quarter valued at $40,000. Finally, Lam Group Inc. acquired a new position in Tesla in the 1st quarter worth approximately $37,000. Institutional investors own 66.20% of the company's stock.

More Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported adjusted EPS of $0.48, above the $0.45 consensus estimate, while revenue of approximately $28.05 billion was broadly in line with expectations. Free cash flow was about $1.5 billion, a significant improvement over expectations for a cash burn, and cash reserves reached roughly $45.4 billion. Tesla revenue beats estimates as deliveries rebound
• Positive Sentiment: Full Self-Driving remains a major bull-case catalyst: management said subscriptions rose 67% year over year, with FSD attached to more than 75% of new North American deliveries. Tesla also said it has begun producing Optimus robots and plans to begin delivering some Cybercabs by year-end. Tesla FSD and robotaxi outlook
• Neutral Sentiment: Tesla and SpaceX have formed independent committees to study a possible merger. The combination could provide AI, robotics, software and infrastructure synergies, but it is not assured, requires shareholder approval and raises questions about transaction terms, dilution and governance. Tesla SpaceX merger talks
• Negative Sentiment: Profitability deteriorated despite the EPS beat. Operating income fell sharply year over year as AI, robotics and autonomy expenses increased; automotive revenue declined, and Tesla Energy revenue reportedly missed expectations by about 22%. The results reinforce concerns that Tesla’s core vehicle business is not yet funding its ambitious technology expansion. Tesla valuation and third-quarter results
• Negative Sentiment: Tesla reduced its 2026 capital-spending outlook to approximately $20 billion from more than $25 billion and pushed back aspects of its Optimus roadmap. Investors interpreted the pullback as a possible sign that AI, robotaxi and robotics deployment may take longer than anticipated. Cybercab plans are also clouded by a federal safety investigation, while unsupervised FSD for personal vehicles is not expected until 2027. Tesla spending pullback and AI ambitions
• Negative Sentiment: Analyst opinion remains divided: Mizuho raised its target to $460 and CLSA upgraded Tesla to Hold, but Needham maintained Hold and GLJ Research reaffirmed Sell. With Tesla trading at a very high earnings multiple, investors are demanding rapid growth from products that remain largely unproven at scale.

About Tesla

Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.

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