Capital International Investors Reduces Position in Tesla, Inc. $TSLA

Key Points

• Capital International Investors reduced its Tesla stake by 8.1% in the fourth quarter, selling 55,461 shares and ending with 625,663 shares valued at about $281.4 million.
• Tesla reported Q1 earnings of $0.41 per share, topping estimates, but revenue of $22.39 billion came in below expectations even though it rose 15.8% from a year earlier.
• Wall Street sentiment remains mixed: analysts currently rate Tesla a Hold on average with a $404.37 price target, while insider selling and valuation concerns continue to weigh on the stock.

Capital International Investors cut its position in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 8.1% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 625,663 shares of the electric vehicle producer's stock after selling 55,461 shares during the period. Capital International Investors' holdings in Tesla were worth $281,373,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in TSLA. Brighton Jones LLC boosted its stake in shares of Tesla by 11.8% during the 4th quarter. Brighton Jones LLC now owns 87,929 shares of the electric vehicle producer's stock worth $35,509,000 after purchasing an additional 9,293 shares during the period. Revolve Wealth Partners LLC boosted its position in Tesla by 21.2% in the 4th quarter. Revolve Wealth Partners LLC now owns 5,317 shares of the electric vehicle producer's stock valued at $2,147,000 after buying an additional 931 shares during the period. Bison Wealth LLC boosted its position in Tesla by 52.2% in the 4th quarter. Bison Wealth LLC now owns 10,368 shares of the electric vehicle producer's stock valued at $4,187,000 after buying an additional 3,558 shares during the period. Sivia Capital Partners LLC boosted its position in Tesla by 9.1% in the 2nd quarter. Sivia Capital Partners LLC now owns 12,135 shares of the electric vehicle producer's stock valued at $3,855,000 after buying an additional 1,011 shares during the period. Finally, AGP Franklin LLC boosted its position in Tesla by 21.2% in the 2nd quarter. AGP Franklin LLC now owns 4,861 shares of the electric vehicle producer's stock valued at $1,544,000 after buying an additional 851 shares during the period. 66.20% of the stock is owned by hedge funds and other institutional investors.

Tesla Stock Performance

NASDAQ:TSLA opened at $391.00 on Monday. Tesla, Inc. has a one year low of $281.85 and a one year high of $498.83. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.04. The firm has a market cap of $1.47 trillion, a P/E ratio of 358.72, a P/E/G ratio of 15.44 and a beta of 1.80. The firm has a 50-day simple moving average of $395.33 and a 200-day simple moving average of $416.11.

Tesla (NASDAQ:TSLA - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 EPS for the quarter, beating the consensus estimate of $0.39 by $0.02. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The business had revenue of $22.39 billion during the quarter, compared to analyst estimates of $22.96 billion. During the same quarter in the previous year, the business posted $0.27 EPS. The company's quarterly revenue was up 15.8% compared to the same quarter last year. Equities analysts anticipate that Tesla, Inc. will post 1.2 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have issued reports on TSLA. Mizuho lowered their price objective on shares of Tesla from $540.00 to $480.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Weiss Ratings reissued a "hold (c-)" rating on shares of Tesla in a research report on Friday, April 24th. TD Cowen reissued a "buy" rating and issued a $490.00 price objective on shares of Tesla in a research report on Thursday. DZ Bank raised shares of Tesla from a "sell" rating to a "hold" rating and set a $385.00 price objective for the company in a research report on Friday, April 24th. Finally, Truist Financial lowered their price objective on shares of Tesla from $438.00 to $400.00 and set a "hold" rating for the company in a research report on Thursday, April 2nd. Twenty-two research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $404.37.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: J.P. Morgan upgraded Tesla and said the company’s long-term story is being driven by autonomous driving and robotics, which is a meaningful endorsement from a former bear. JP Morgan upgrades Tesla to 'neutral', sees robotics driving long-term growth
• Positive Sentiment: Broader commentary around Tesla’s AI and robotics ambitions, including Optimus and robotaxi progress, is reinforcing the bullish case that Tesla could be valued more like an AI platform than a carmaker. J.P. Morgan Upgrades Tesla Stock (TSLA) to ‘Neutral,’ Says ‘TSLA Is at the Forefront of Physical AI’
• Positive Sentiment: Some reports point to improving vehicle sales and stronger autonomous-driving momentum, including expansion of Tesla’s robotaxi service in Austin and rising global EV sales led by Tesla. Global Electric Vehicle Sales Rose 16% in April, Led by Tesla (TSLA)
• Neutral Sentiment: SpaceX’s huge IPO and Elon Musk-related headlines are boosting attention on Musk’s broader empire, but they are not direct operating catalysts for Tesla’s core business. SpaceX targets $135 IPO price at valuation of $1.77 trillion
• Negative Sentiment: Tesla remains vulnerable to valuation concerns, with multiple pieces noting that the stock price already reflects a lot of future AI and robotics success before those profits are proven. Buy, Hold, or Sell: Is Tesla Stock a Sell Above $400?
• Negative Sentiment: There are also recurring concerns about competition, robotaxi execution, and softer short-term trading sentiment, which may limit upside even after the upgrade. More Unfortunate News for Tesla Stock Investors

Insider Activity

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the transaction, the director owned 48,399 shares in the company, valued at $18,300,145.89. The trade was a 35.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 3,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total transaction of $1,350,000.00. Following the transaction, the chief financial officer owned 18,106 shares of the company's stock, valued at approximately $8,147,700. This trade represents a 14.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 55,218 shares of company stock valued at $20,609,455. Company insiders own 19.90% of the company's stock.

Tesla Profile

Tesla, Inc NASDAQ: TSLA is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company's stated mission is to accelerate the world's transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.

Tesla's automotive business includes a lineup of battery‑electric vehicles and related services.

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