Rakuten Investment Management Inc. Buys 75,495 Shares of Tesla, Inc. $TSLA

Key Points

• Rakuten Investment Management increased its Tesla position by 14.4% in the second quarter, buying 75,495 additional shares for a total of 600,424 shares valued at approximately $247.3 million.
• Institutional investors own 66.2% of Tesla’s stock, while the company’s shares opened at $368.16 and carry a very high price-to-earnings ratio of 340.89.
• Tesla’s outlook remains mixed: analysts cite potential from European self-driving approvals and Cybercab cost advantages, but regulatory scrutiny, muted robotaxi economics and weak Chinese sales remain concerns. The stock has an average analyst rating of “Hold” with a $401.74 price target.

Rakuten Investment Management Inc. boosted its holdings in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 14.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 600,424 shares of the electric vehicle producer's stock after purchasing an additional 75,495 shares during the period. Tesla comprises approximately 0.7% of Rakuten Investment Management Inc.'s holdings, making the stock its 12th largest holding. Rakuten Investment Management Inc.'s holdings in Tesla were worth $247,279,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of TSLA. Bamco Inc. NY lifted its position in Tesla by 5.0% during the second quarter. Bamco Inc. NY now owns 12,524,752 shares of the electric vehicle producer's stock valued at $5,267,911,000 after buying an additional 591,243 shares during the period. Wealthquest Corp purchased a new position in Tesla during the 4th quarter valued at about $1,035,000. Private Capital Advisors Inc. boosted its stake in Tesla by 139.3% during the fourth quarter. Private Capital Advisors Inc. now owns 21,331 shares of the electric vehicle producer's stock worth $9,593,000 after acquiring an additional 12,417 shares in the last quarter. Knights of Columbus Asset Advisors LLC grew its holdings in Tesla by 34.8% in the fourth quarter. Knights of Columbus Asset Advisors LLC now owns 64,481 shares of the electric vehicle producer's stock worth $28,998,000 after purchasing an additional 16,652 shares during the period. Finally, Canada Post Corp Registered Pension Plan increased its stake in shares of Tesla by 26.6% during the fourth quarter. Canada Post Corp Registered Pension Plan now owns 70,955 shares of the electric vehicle producer's stock valued at $31,910,000 after purchasing an additional 14,900 shares in the last quarter. Hedge funds and other institutional investors own 66.20% of the company's stock.

Tesla Price Performance

NASDAQ TSLA opened at $368.16 on Wednesday. The business's fifty day moving average is $356.02 and its 200 day moving average is $382.15. Tesla, Inc. has a fifty-two week low of $297.38 and a fifty-two week high of $498.83. 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 company has a market capitalization of $1.45 trillion, a PE ratio of 340.89, a price-to-earnings-growth ratio of 17.88 and a beta of 1.84.

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

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Slovenia approved Tesla’s supervised Full Self-Driving system, becoming the sixth European country to authorize the technology. The decision could support wider European adoption and future high-margin software revenue. Slovenia clears Tesla FSD driver assistance
• Positive Sentiment: Goldman Sachs estimates Tesla’s Cybercab could operate for as much as $0.30 less per mile than competing autonomous vehicles if Tesla achieves its targeted $20,000–$30,000 production cost, strengthening the long-term robotaxi business case. Tesla Cybercab cost advantage
• Neutral Sentiment: Tesla has begun limited paid Cybercab rides in Austin, moving its steering-wheel-free robotaxi from concept toward commercial service. However, the small rollout provides little evidence yet regarding pricing, utilization, fleet growth or profitability. Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected
• Negative Sentiment: The National Highway Traffic Safety Administration opened a probe into the certification and safety of nearly 1,000 Cybercabs, focusing on the vehicles’ lack of steering wheels and pedals. The investigation could delay expansion and increase regulatory costs. Cybercab certification regulatory probe
• Negative Sentiment: The Cybercab launch was viewed as muted because Tesla did not provide clear economics, production targets or a nationwide rollout schedule. Investors are also comparing Tesla’s limited Austin operation with Waymo’s much larger autonomous ride network. Tesla stock falls after Cybercab launch and NHTSA probe
• Negative Sentiment: Weak demand remains a concern: Tesla’s Chinese retail sales fell 12.4% in August, while European registrations were mixed. A viral video showing a person repeatedly triggering a Cybercab’s emergency braking also raised additional safety questions. Tesla sales in China

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. BMO Capital Markets began coverage on Tesla in a research report on Monday, August 17th. They issued an "outperform" rating on the stock. Erste Group Bank upgraded Tesla from a "sell" rating to a "hold" rating in a research note on Friday, June 5th. Oppenheimer reissued a "market perform" rating on shares of Tesla in a report on Thursday, July 23rd. Robert W. Baird set a $475.00 target price on Tesla in a research note on Monday, July 27th. Finally, Glj Research reaffirmed a "sell" rating on shares of Tesla in a research report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, eighteen have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $401.74.

Tesla Company Profile

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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