Tesla (NASDAQ:TSLA) Stock Rating Reaffirmed as "Neutral" by JPMorgan Chase & Co.

Key Points

• JPMorgan reaffirmed its “Neutral” rating on Tesla. Overall analyst sentiment remains “Hold,” with a consensus price target of $411.89.
• Tesla opened at $372.11, with a market capitalization of approximately $1.47 trillion and a very high price-to-earnings ratio of 344.55. Its latest quarterly EPS of $0.33 missed the $0.50 consensus estimate, despite revenue exceeding expectations.
• Potential catalysts include the Roadster reveal, Semi deliveries and upcoming vehicle-delivery results, while competitive pressure, regulatory scrutiny, insider selling and concerns about profitability continue to weigh on the outlook.

Tesla (NASDAQ:TSLA - Get Free Report)'s stock had its "neutral" rating reissued by analysts at JPMorgan Chase & Co. in a research report issued on Monday.

TSLA has been the subject of several other research reports. Truist Financial set a $370.00 price target on shares of Tesla and gave the stock a "hold" rating in a research note on Thursday, July 23rd. DZ Bank upgraded shares of Tesla from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. BNP Paribas Exane lowered their target price on shares of Tesla from $280.00 to $268.00 and set an "underperform" rating for the company in a research note on Thursday. Oppenheimer reissued a "market perform" rating on shares of Tesla in a report on Monday, September 21st. Finally, Citizens Jmp began coverage on Tesla in a research note on Thursday, July 9th. They issued a "market perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, nineteen have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $411.89.

Tesla Price Performance

TSLA opened at $372.11 on Monday. The stock's 50-day moving average price is $347.72 and its 200 day moving average price is $378.78. Tesla has a 12-month low of $297.38 and a 12-month high of $498.83. The firm has a market cap of $1.47 trillion, a price-to-earnings ratio of 344.55, a PEG ratio of 18.79 and a beta of 1.84. The company has a current ratio of 1.94, a quick ratio of 1.55 and a debt-to-equity ratio of 0.09.

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

Insiders Place Their Bets

In related news, CFO Vaibhav Taneja sold 2,606 shares of the business's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total value of $938,498.78. Following the completion of the sale, the chief financial officer directly 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 legal filing with the Securities & Exchange Commission, which is available at 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 company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Security National Bank of Sioux City Iowa IA acquired a new position in shares of Tesla in the 2nd quarter valued at $25,000. Friedenthal Financial grew its position in 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 purchasing an additional 30 shares during the last quarter. Harborfront Financial Group LLC acquired a new position in Tesla in the second quarter valued at $34,000. Sarver Vrooman Wealth Advisors purchased a new stake in shares of Tesla in the fourth quarter valued at about $37,000. Finally, Lam Group Inc. acquired a new stake in shares of Tesla during the first quarter worth about $37,000. Hedge funds and other institutional investors own 66.20% of the company's stock.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Roadster reveal may provide a near-term catalyst. A Tesla patent reportedly details an active rear-wing system capable of deploying in about three seconds and generating up to 700 kilograms of downforce. Investors are also watching for possible LiDAR technology ahead of the Roadster’s scheduled October 1 debut. Tesla Roadster patent article
• Positive Sentiment: Semi deliveries and expansion beyond passenger vehicles support the growth story. Tesla has begun delivering its long-delayed Semi trucks and says the program has reached volume production. Analysts and investors are also focused on energy storage, robotics, robotaxis and Optimus as potential additional growth engines. Tesla Semi production article Tesla growth engines article
• Positive Sentiment: Analyst support and upcoming deliveries could improve sentiment. Royal Bank of Canada reiterated its “Buy” rating, while Tesla’s early-October third-quarter delivery report is viewed as an important indication of demand and a potential stock catalyst. RBC Tesla rating article Tesla delivery expectations article
• Neutral Sentiment: Optimism around Optimus is largely long term. Elon Musk has suggested the robotics business could eventually support a $25 trillion Tesla valuation, but the company is spending heavily to scale production and meaningful commercial revenue is not expected immediately. Optimus valuation article
• Negative Sentiment: Valuation and profitability remain major concerns. Commentary highlights Tesla’s slipping profitability, uneven revenue trends and a valuation dependent on successful autonomy, robotics and other future businesses. Its latest reported quarter included a $0.33 EPS result, below the $0.50 consensus estimate, despite revenue of $28.24 billion. Tesla valuation risks article
• Negative Sentiment: Competitive and regulatory pressure is weighing on the outlook. Tesla’s China sales reportedly fell 9% year over year, European market share has slipped to about 8.4%, and its Full Self-Driving system faces scrutiny in Brussels. Recent analyst downgrades and continued insider selling add further caution. Tesla China competition article

About Tesla

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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