Royal London Asset Management Ltd. Increases Stock Position in Tesla, Inc. $TSLA

Key Points

• Royal London Asset Management increased its Tesla stake by 0.9% in the second quarter, purchasing 13,399 additional shares. It now owns 1.58 million shares valued at approximately $663.1 million, while institutional investors collectively own 66.2% of Tesla.
• Tesla’s robotaxi and Full Self-Driving initiatives remain key growth catalysts, including Cybercab fleet expansion in Austin and Slovenia’s approval of supervised FSD. However, regulatory scrutiny, uncertain commercial economics and weakening China sales pose significant risks.
• Tesla shares trade at a demanding valuation, with a P/E ratio of about 340 and a consensus analyst rating of “Hold.” The company recently missed quarterly earnings estimates despite 25.5% year-over-year revenue growth, while CFO Vaibhav Taneja sold shares to cover tax obligations.

Royal London Asset Management Ltd. increased its holdings in Tesla, Inc. (NASDAQ:TSLA - Free Report) by 0.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,576,565 shares of the electric vehicle producer's stock after purchasing an additional 13,399 shares during the quarter. Tesla makes up approximately 1.2% of Royal London Asset Management Ltd.'s holdings, making the stock its 15th largest holding. Royal London Asset Management Ltd.'s holdings in Tesla were worth $663,103,000 at the end of the most recent quarter.

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

Insider Transactions at Tesla

In related news, CFO Vaibhav Taneja sold 2,606 shares of Tesla 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 sale, the chief financial officer owned 25,972 shares of the company's stock, valued at approximately $9,353,296.36. This trade represents a 9.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 19.90% of the company's stock.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla’s Cybercab rollout remains the primary bullish catalyst. The company has added 45 vehicles to its Austin fleet, while CEO Elon Musk says the redesigned manufacturing process could produce Cybercabs more than five times faster. Lower operating costs could help Tesla compete with Waymo and Uber if the technology scales. 45 Tesla Cybercabs Are Now Roaming Austin
• Positive Sentiment: Slovenia approved Tesla’s supervised Full Self-Driving system, making it the sixth European country to do so. Investors view the approval as a possible step toward an EU-wide authorization and additional software subscription revenue. A potential European launch of Cybercab is also supporting the long-term growth narrative. Slovenia clears Tesla’s FSD driver assistance
• Positive Sentiment: Goldman Sachs estimates Tesla’s Cybercab could operate at a cost advantage of as much as $0.30 per mile versus rival autonomous vehicles if Tesla reaches its targeted production costs, strengthening the potential economics of a large robotaxi network. Tesla Cybercab Could Beat Waymo on Cost
• Neutral Sentiment: Analysts continue to debate whether Tesla can become a successful robotaxi platform or whether Waymo’s operational experience and sensor-heavy approach give it an advantage. The Cybercab’s early fares have varied widely versus Uber, highlighting that the commercial model is not yet proven. Tesla versus Alphabet’s Waymo
• Negative Sentiment: Tesla’s China sales continue to weaken. August domestic sales declined, and the company is offering cash incentives through September 30, suggesting persistent competitive and demand pressure in the world’s largest EV market. Strong exports provide some offset but do not resolve the underlying weakness. Tesla Sales in China Continue Negative Streak
• Negative Sentiment: Regulatory scrutiny remains a major risk. The National Highway Traffic Safety Administration is examining certification and technical data related to nearly 1,000 driverless Cybercabs, raising questions about Tesla’s ability to expand the service quickly and safely. Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected
• Negative Sentiment: Some investors remain bearish because Tesla’s valuation is demanding relative to its modest profitability and slowing core auto business. With a very high earnings multiple, the stock is particularly dependent on successful execution of FSD, robotaxis and other future businesses.

Tesla Trading Down 0.1%

Shares of Tesla stock opened at $367.81 on Thursday. 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 P/E ratio of 340.57, a P/E/G ratio of 18.59 and a beta of 1.84. The company has a fifty day moving average of $354.87 and a 200 day moving average of $381.84.

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

Analyst Ratings Changes

Several brokerages have recently issued reports on TSLA. Barclays upped their target price on shares of Tesla from $360.00 to $370.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 14th. BTIG Research lowered Tesla to a "neutral" rating in a report on Friday, June 5th. Royal Bank Of Canada restated an "outperform" rating and issued a $500.00 price target on shares of Tesla in a research note on Tuesday, July 28th. Jefferies Financial Group set a $400.00 price objective on shares of Tesla and gave the company a "hold" rating in a research report on Monday, July 13th. Finally, Mizuho set a $450.00 target price on Tesla and gave the company an "outperform" rating in a report on Thursday, July 23rd. One equities 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 given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $401.74.

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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