Tesla (NASDAQ:TSLA) Stock Rating Reaffirmed as "Hold" by Needham & Company LLC

Key Points

• Needham & Company reaffirmed its “Hold” rating on Tesla, while analysts overall maintain a consensus “Hold” rating with an average price target of $416.40.
• Tesla reported quarterly EPS of $0.48, beating the $0.45 consensus estimate, but revenue of $28.05 billion was essentially flat year over year and vehicle deliveries and operating income weakened.
• Investors are balancing potential growth from autonomy, robotaxis, Optimus and energy storage against concerns over Tesla’s reduced capital-expenditure outlook, slowing core results and high valuation.

Tesla (NASDAQ:TSLA - Get Free Report)'s stock had its "hold" rating restated by equities researchers at Needham & Company LLC in a research note issued to investors on Thursday, Benzinga reports.

A number of other equities research analysts have also issued reports on TSLA. Wells Fargo & Company reissued a "buy" rating on shares of Tesla in a report on Thursday, October 1st. UBS Group restated a "neutral" rating and set a $425.00 price objective on shares of Tesla in a research report on Thursday. Barclays raised shares of Tesla from a "negative" rating to an "outperform" rating in a research note on Monday. Robert W. Baird set a $475.00 target price on shares of Tesla in a report on Monday, July 27th. Finally, TD Cowen reiterated a "buy" rating on shares of Tesla in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nineteen have assigned a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $416.40.

Tesla Stock Performance

NASDAQ TSLA opened at $386.47 on Thursday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.55 and a current ratio of 1.94. The stock's fifty day moving average is $362.72 and its two-hundred day moving average is $377.16. The firm has a market capitalization of $1.53 trillion, a P/E ratio of 357.85, a price-to-earnings-growth ratio of 23.73 and a beta of 1.92. Tesla has a fifty-two week low of $297.38 and a fifty-two week high of $498.83.

Tesla (NASDAQ:TSLA - Get Free Report) last issued its earnings results on Thursday, October 22nd. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.03. Tesla had a return on equity of 3.82% and a net margin of 3.67%. The business had revenue of $28.05 billion during the quarter, compared to the consensus estimate of $28.06 billion. During the same period last year, the company earned $0.50 EPS. The company's revenue for the quarter was down .2% on a year-over-year basis. On average, research analysts anticipate that Tesla will post 0.71 earnings per share for the current year.

Insiders Place Their Bets

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total value of $938,498.78. Following the sale, the chief financial officer owned 25,972 shares of the company's stock, 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 Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 19.90% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. SeaCrest Wealth Management LLC boosted its stake in Tesla by 1.8% during the 3rd quarter. SeaCrest Wealth Management LLC now owns 18,192 shares of the electric vehicle producer's stock valued at $6,455,000 after purchasing an additional 314 shares during the period. NBT Bank N.A. acquired a new position in shares of Tesla during the third quarter worth approximately $402,000. Root Financial Partners LLC grew its holdings in Tesla by 11.2% in the 3rd quarter. Root Financial Partners LLC now owns 24,769 shares of the electric vehicle producer's stock worth $8,788,000 after buying an additional 2,497 shares in the last quarter. Carter Financial Group INC. grew its holdings in Tesla by 17.1% in the 3rd quarter. Carter Financial Group INC. now owns 6,343 shares of the electric vehicle producer's stock worth $2,251,000 after buying an additional 928 shares in the last quarter. Finally, JSF Financial LLC grew its holdings in Tesla by 5.2% in the 3rd quarter. JSF Financial LLC now owns 3,063 shares of the electric vehicle producer's stock worth $1,087,000 after buying an additional 151 shares in the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Tesla

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 quarterly revenue was approximately $28.05 billion. The company also generated roughly $1.5 billion in positive free cash flow, a significant improvement over expectations for an outflow. Reuters Tesla third-quarter results
• Positive Sentiment: Management highlighted growing autonomy activity: FSD exceeded a 75% attach rate on new North American vehicles, Cybercab miles increased sharply in Austin, and Tesla says it plans to begin customer deliveries of the robotaxi by year-end. Reuters Cybercab plans
• Positive Sentiment: Bank of America reiterated a Buy rating and assigned a $460 price target, citing potential growth from FSD, robotaxis, Optimus and Megapack. Bank of America Tesla price target
• Neutral Sentiment: Elon Musk said Tesla and SpaceX are exploring a possible merger through independent committees. The deal could provide access to AI infrastructure and technology, but it remains uncertain and could create valuation, governance and dilution concerns for Tesla shareholders. Reuters Tesla-SpaceX merger talks
• Negative Sentiment: Tesla lowered its full-year capital-expenditure outlook to about $20 billion. Investors interpreted the pullback as potentially slowing the development of AI computing, autonomous driving and robotics—the businesses supporting much of Tesla’s valuation. Reuters Tesla spending pullback
• Negative Sentiment: Underlying results were less encouraging: vehicle deliveries declined year over year, revenue was essentially flat, energy revenue missed estimates, and operating income fell sharply as AI and research costs increased. Musk also said Optimus will require at least another year to reach full production scale, while unsupervised FSD for personal vehicles is targeted for 2027. Tesla earnings and delivery results

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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