Tesla (NASDAQ:TSLA) Upgraded to "Hold" at CLSA

Key Points

• CLSA upgraded Tesla to “Hold” from “Underperform and set a $400 price target, implying roughly 3.5% upside from the prior close. The broader analyst consensus is also “Hold,” with an average target of $416.40.
• Tesla shares opened at $386.47, while the company reported quarterly EPS of $0.48, beating the $0.45 consensus estimate. Revenue of $28.05 billion was essentially in line with expectations, but was slightly down year over year.
• Investor concerns remain focused on weakening profitability and Tesla’s high valuation: operating income declined sharply amid increased AI and robotics spending, while energy revenue and regulatory-credit revenue also fell.

Tesla (NASDAQ:TSLA - Get Free Report) was upgraded by CLSA from an "underperform" rating to a "hold" rating in a report issued on Thursday, MarketBeat reports. The brokerage presently has a $400.00 price target on the electric vehicle producer's stock. CLSA's price target suggests a potential upside of 3.50% from the company's previous close.

Several other equities research analysts have also issued reports on the company. BMO Capital Markets initiated coverage on Tesla in a research report on Monday, August 17th. They set an "outperform" rating for the company. Truist Financial set a $370.00 price target on shares of Tesla and gave the company a "hold" rating in a research report on Thursday, July 23rd. Jefferies Financial Group restated a "hold" rating and set a $400.00 price objective (up from $350.00) on shares of Tesla in a report on Monday, October 12th. Glj Research reaffirmed a "sell" rating on shares of Tesla in a research report on Thursday, October 15th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Tesla in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nineteen have issued a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $416.40.

Tesla Stock Up 3.4%

Shares of NASDAQ TSLA opened at $386.47 on Thursday. The company's 50 day moving average price is $362.72 and its 200-day moving average price is $377.16. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.55 and a current ratio of 1.94. Tesla has a 52-week low of $297.38 and a 52-week high of $498.83. The company 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 (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 for the quarter, beating the consensus estimate of $0.45 by $0.03. Tesla had a net margin of 3.67% and a return on equity of 3.82%. The firm had revenue of $28.05 billion for the quarter, compared to analyst estimates of $28.06 billion. During the same quarter in the prior year, the business earned $0.50 earnings per share. The business's quarterly revenue was down .2% compared to the same quarter last year. Equities analysts forecast that Tesla will post 0.71 earnings per share for the current year.

Insider Transactions at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the company'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 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 $9,353,296.36. This represents a 9.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 Trading of Tesla

A number of institutional investors and hedge funds have recently bought and sold shares of TSLA. JSF Financial LLC raised its position 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 purchasing an additional 151 shares during the period. SBI Securities Co. Ltd. lifted its stake in Tesla by 7.0% in the third quarter. SBI Securities Co. Ltd. now owns 276,915 shares of the electric vehicle producer's stock worth $98,252,000 after purchasing an additional 18,073 shares during the last quarter. Smith Chas P & Associates PA Cpas lifted its position in Tesla by 23.7% in the third quarter. Smith Chas P & Associates PA Cpas now owns 1,718 shares of the electric vehicle producer's stock valued at $609,000 after purchasing an additional 329 shares during the last quarter. Pinnacle Bancorp Inc. boosted its stake in shares of Tesla by 10.7% during the third quarter. Pinnacle Bancorp Inc. now owns 829 shares of the electric vehicle producer's stock valued at $294,000 after purchasing an additional 80 shares during the period. Finally, Cypress Wealth Services LLC grew its holdings in shares of Tesla by 3.0% in the third quarter. Cypress Wealth Services LLC now owns 16,488 shares of the electric vehicle producer's stock worth $6,276,000 after purchasing an additional 483 shares during the last quarter. 66.20% of the stock is currently owned by institutional investors.

More Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Adjusted earnings beat expectations: Tesla reported third-quarter EPS of $0.48, above the $0.45 consensus estimate. Revenue of approximately $28.05 billion was broadly in line with forecasts, while vehicle deliveries rebounded and services revenue increased 33%. Reuters Tesla earnings report
• Positive Sentiment: Cash generation and future businesses provided support: Tesla ended the quarter with roughly $45.4 billion in cash and generated about $1.5 billion in free cash flow. The company also began producing Optimus humanoid robots in Fremont, while driverless Cybercab rides and robotaxi expansion reinforce the long-term artificial-intelligence investment case. Business Insider Optimus production report
• Neutral Sentiment: SpaceX merger remains a major valuation catalyst—but only a possibility: Independent committees at Tesla and SpaceX are evaluating a potential merger, and Elon Musk has called the idea attractive. However, Musk offered no substantive new information during Wednesday’s discussion, and the transaction would require shareholder approval and could involve stock issuance that dilutes Tesla investors. MarketWatch Tesla SpaceX merger update
• Negative Sentiment: Profitability deteriorated sharply: Operating income fell 56% year over year as spending on AI, robotics and autonomous driving increased. The quarter’s revenue was essentially flat, and investors remain concerned that Tesla’s premium valuation depends increasingly on future businesses rather than its core automotive operations. Business Insider Tesla profit report
• Negative Sentiment: Energy and automotive pressures persisted: Energy-segment revenue missed estimates by about 22%, regulatory-credit revenue declined 76%, and analysts highlighted delays or uncertainty around key growth products. These results are weighing more heavily than the modest EPS and revenue beats. Investor's Business Daily Tesla energy revenue report

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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