Royal Bank Of Canada Reaffirms "Buy" Rating for Tesla (NASDAQ:TSLA)

Key Points

• Royal Bank of Canada reaffirmed its “Buy” rating on Tesla, while broader analyst sentiment remains “Hold,” with 21 Buy, 19 Hold and 5 Sell ratings and an average price target of $411.89.
• Tesla shares opened at $372.11, down 1.5%, and trade at a highly elevated valuation, including a price-to-earnings ratio of 344.55. The company’s latest quarter beat revenue expectations but missed earnings estimates, reporting $28.24 billion in revenue and $0.33 in EPS.
• Tesla’s Semi deliveries and reported 2,500-truck order support its expansion into commercial vehicles, but regulatory delays for European supervised FSD and reported Optimus production bottlenecks present meaningful risks to its growth narrative.

Tesla (NASDAQ:TSLA - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at Royal Bank Of Canada in a research note issued on Friday.

TSLA has been the subject of several other research reports. Roth Capital reiterated a "buy" rating and issued a $505.00 price target on shares of Tesla in a research report on Thursday, July 23rd. JPMorgan Chase & Co. cut their target price on Tesla from $475.00 to $445.00 and set a "neutral" rating on the stock in a research note on Thursday, July 23rd. The Goldman Sachs Group restated a "neutral" rating and issued a $360.00 price target on shares of Tesla in a report on Wednesday, September 16th. William Blair restated a "market perform" rating on shares of Tesla in a report on Thursday, July 2nd. Finally, Evercore raised shares of Tesla from a "hold" rating to an "outperform" rating in a research report on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, nineteen have given a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $411.89.

Tesla Stock Down 1.5%

Shares of TSLA stock opened at $372.11 on Friday. The company has a market capitalization of $1.47 trillion, a price-to-earnings ratio of 344.55, a PEG ratio of 19.08 and a beta of 1.84. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.55. The company's fifty day moving average price is $347.72 and its 200-day moving average price is $378.92. Tesla has a one year low of $297.38 and a one year high of $498.83.

Tesla (NASDAQ:TSLA - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The electric vehicle producer reported $0.33 earnings per share for the quarter, missing analysts' consensus estimates of $0.50 by ($0.17). The business had revenue of $28.24 billion during the quarter, compared to the consensus estimate of $26.42 billion. Tesla had a return on equity of 3.82% and a net margin of 3.67%.The business's revenue was up 25.5% on a year-over-year basis. During the same period last year, the company earned $0.33 EPS. Sell-side analysts expect that Tesla will post 0.88 EPS for the current fiscal year.

Insider Buying and Selling at Tesla

In related news, CFO Vaibhav Taneja sold 2,606 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total transaction of $938,498.78. Following the completion of the transaction, the chief financial officer owned 25,972 shares of the company's stock, valued at approximately $9,353,296.36. This trade represents a 9.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible 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 corporate insiders.

Institutional Trading of Tesla

A number of institutional investors and hedge funds have recently bought and sold shares of TSLA. Marks Group Wealth Management Inc increased its position in shares of Tesla by 1.7% during the fourth quarter. Marks Group Wealth Management Inc now owns 1,512 shares of the electric vehicle producer's stock worth $680,000 after acquiring an additional 25 shares during the period. Clear Trail Advisors LLC increased its holdings in Tesla by 1.6% in the first quarter. Clear Trail Advisors LLC now owns 1,628 shares of the electric vehicle producer's stock valued at $605,000 after buying an additional 25 shares during the last quarter. Peirce Capital Management LLC increased its holdings in shares of Tesla by 1.5% in the 2nd quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer's stock valued at $697,000 after acquiring an additional 25 shares during the last quarter. WealthTrust Axiom LLC raised its holdings in Tesla by 1.6% during the fourth quarter. WealthTrust Axiom LLC now owns 1,630 shares of the electric vehicle producer's stock worth $733,000 after purchasing an additional 26 shares in the last quarter. Finally, Retirement Planning Group LLC NY grew its position in shares of Tesla by 3.8% in the 1st quarter. Retirement Planning Group LLC NY now owns 713 shares of the electric vehicle producer's stock valued at $265,000 after buying an additional 26 shares during the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla began delivering its long-delayed Semi electric truck to customers including PepsiCo, DHL and U.S. Foods. The company has started high-volume production at its Nevada factory and is targeting annual capacity of 50,000 trucks. The 500-mile range and elevated diesel prices could improve the economic case for fleet operators. Tesla begins delivering Semi trucks to customers after years of delays
• Positive Sentiment: Tesla reportedly secured a 2,500-truck electric Class 8 order, offering an important early demand signal for the Semi as the company expands beyond passenger vehicles. Tesla wins lead role in 2,500-truck electric Class 8 order
• Positive Sentiment: A new Roadster teaser ahead of the October 1 reveal and reopened reservations are supporting enthusiasm around Tesla’s product pipeline, although financial details remain limited. Tesla drops new Roadster teaser ahead of October 1 reveal
• Neutral Sentiment: Faraday chairman Jerry Wang said Optimus commercialization next year is realistic as software and training improve, but the claim is speculative and not a Tesla forecast. Tesla Optimus commercialization could be realistic next year
• Negative Sentiment: The European Union postponed a vote on Tesla’s supervised FSD system; the next apparent opportunity is not until December. The delay pushes back potential software revenue and broader regulatory adoption. EU vote on Tesla’s supervised self-driving system pushed back
• Negative Sentiment: Reports that Optimus production is constrained by robot-hand assembly and supplier bottlenecks undermine a major part of Tesla’s artificial-intelligence investment narrative. Tesla Optimus reportedly hits production snags
• Negative Sentiment: Belgian testing found FSD frequently exceeded speed limits and attempted prohibited cyclist passes, increasing regulatory, safety and reputational risks. Meanwhile, analysts continue to question whether Semi volumes and margins will justify Tesla’s premium valuation. Tesla supervised self-driving system often misreads speed limits

Tesla Company Profile

Tesla, Inc is an American technology and automotive company that designs, develops, manufactures and sells electric vehicles and related energy products. Its vehicle lineup has included the Model S, Model 3, Model X, Model Y and Cybertruck, along with commercial and specialty products such as the Tesla Semi.

The company also develops energy-generation and storage products, including solar panels, solar roofing systems and battery storage solutions for residential, commercial and utility customers.

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