Bank of America Corp DE Sells 845,410 Shares of Tesla, Inc. $TSLA

Key Points

• Bank of America reduced its Tesla stake by 4.5%, selling 845,410 shares in the second quarter but retaining 18.1 million shares valued at approximately $7.62 billion. Institutional investors collectively own 66.2% of Tesla.
• Tesla reported quarterly revenue of $28.24 billion, ahead of expectations, but earnings per share of $0.33 missed the $0.50 consensus estimate. The stock traded at $365.44, with a market capitalization of roughly $1.44 trillion and a highly elevated price-to-earnings ratio.
• Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $414.68. Longer-term opportunities include the Semi, robotaxis and robotics, while China sales pressure, declining margins, valuation concerns and regulatory scrutiny remain key risks.

Bank of America Corp DE trimmed its position in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 4.5% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 18,117,418 shares of the electric vehicle producer's stock after selling 845,410 shares during the period. Tesla comprises 0.5% of Bank of America Corp DE's holdings, making the stock its 28th biggest holding. Bank of America Corp DE owned approximately 0.46% of Tesla worth $7,620,186,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Marks Group Wealth Management Inc grew its stake 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 valued at $680,000 after buying an additional 25 shares during the last quarter. Clear Trail Advisors LLC increased its stake 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 worth $605,000 after purchasing an additional 25 shares during the period. Peirce Capital Management LLC lifted its position in shares of Tesla by 1.5% during the second quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer's stock worth $697,000 after purchasing an additional 25 shares during the last quarter. Community Bank & Trust Waco Texas lifted its position in shares of Tesla by 1.7% during the fourth quarter. Community Bank & Trust Waco Texas now owns 1,581 shares of the electric vehicle producer's stock worth $711,000 after purchasing an additional 26 shares during the last quarter. Finally, WealthTrust Axiom LLC boosted its stake in shares of Tesla by 1.6% during the fourth quarter. WealthTrust Axiom LLC now owns 1,630 shares of the electric vehicle producer's stock valued at $733,000 after purchasing an additional 26 shares during the period. 66.20% of the stock is owned by hedge funds and other institutional investors.

Tesla Stock Performance

Shares of NASDAQ:TSLA opened at $365.44 on Monday. The firm has a 50 day moving average of $353.71 and a 200 day moving average of $381.26. The company has a quick ratio of 1.55, a current ratio of 1.94 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $1.44 trillion, a price-to-earnings ratio of 338.37, a price-to-earnings-growth ratio of 18.45 and a beta of 1.84. Tesla, Inc. has a 52 week low of $297.38 and a 52 week high of $498.83.

Tesla (NASDAQ:TSLA - Get Free Report) last issued 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 company had revenue of $28.24 billion for the quarter, compared to analysts' expectations of $26.42 billion. Tesla had a return on equity of 3.82% and a net margin of 3.67%.The company's revenue for the quarter was up 25.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.33 earnings per share. On average, sell-side analysts predict that Tesla, Inc. will post 0.88 earnings per share for the current fiscal year.

Insider Activity at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the firm's stock in a transaction that occurred 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 in the company, valued at $9,353,296.36. This trade represents 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 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.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TSLA. Needham & Company LLC reaffirmed a "hold" rating on shares of Tesla in a research note on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft set a $420.00 price objective on Tesla in a report on Monday, July 27th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Tesla in a report on Tuesday, July 21st. Glj Research reissued a "sell" rating on shares of Tesla in a research report on Friday, September 4th. Finally, Evercore upgraded Tesla from a "hold" rating to an "outperform" rating in a research note on Friday, June 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eighteen have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $414.68.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla confirmed that its long-delayed Semi electric truck will enter Europe, with customer deliveries expected to begin in 2027. Morgan Stanley argues that high diesel prices could improve the economics of electric heavy-duty trucks and create a large new market for Tesla. Tesla eyes European freight market with long-delayed Semi truck
• Positive Sentiment: The Semi announcement strengthens Tesla’s longer-term growth narrative beyond passenger vehicles. Investors are also focused on possible future catalysts from robotaxis, Full Self-Driving software and Optimus robotics, although these businesses have yet to demonstrate large-scale profitability. How Tesla could transform trucking
• Neutral Sentiment: Tesla’s Cybercab pilot in Austin and recent Optimus demonstrations are sustaining investor interest in artificial intelligence and autonomous services. However, analysts and investors continue to debate whether Tesla can scale robotaxis profitably and compete with Waymo. Tesla opinions on Optimus and robotaxi innovations
• Negative Sentiment: China remains a significant pressure point. Tesla’s August sales reportedly fell about 26% year over year despite the launch of the Model Y Performance, marking another monthly decline amid intense competition from BYD and other domestic manufacturers. Tesla launches Model Y Performance in China
• Negative Sentiment: House lawmakers are seeking federal action after videos appeared to show drivers asleep while using Autopilot or Full Self-Driving. Additional scrutiny could slow autonomous-service expansion and increase legal, regulatory and reputational risks. House Democrat urges US action over sleeping Tesla drivers
• Negative Sentiment: Investors remain concerned about Tesla’s valuation and profitability: operating margins have reportedly fallen to 1.4%, free cash flow turned negative, and China discounts could support deliveries while further reducing margins. The stock’s premium valuation leaves limited room for execution disappointments.
• Neutral Sentiment: CFO Vaibhav Taneja sold shares to cover tax withholding on vested equity awards. While the transaction may attract attention, it was not described as a discretionary investment sale and therefore provides limited insight into management’s outlook. Vaibhav Taneja sells Tesla shares

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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