Second Line Capital LLC Sells 6,655 Shares of Tesla, Inc. $TSLA

Key Points

• Second Line Capital cut its Tesla position by 60.1% in the second quarter, selling 6,655 shares and retaining 4,418 shares valued at approximately $1.86 million.
• Other institutional investors made modest purchases, and hedge funds and other institutions collectively own 66.2% of Tesla’s shares.
• Tesla carries an average analyst rating of “Hold” with a $414.68 price target; its shares trade at a highly elevated price-to-earnings ratio of about 330, while the company recently missed quarterly earnings expectations despite 25.5% year-over-year revenue growth.

Second Line Capital LLC decreased its position in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 60.1% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,418 shares of the electric vehicle producer's stock after selling 6,655 shares during the quarter. Second Line Capital LLC's holdings in Tesla were worth $1,858,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in the company. Marks Group Wealth Management Inc boosted its stake in Tesla by 1.7% during the 4th quarter. Marks Group Wealth Management Inc now owns 1,512 shares of the electric vehicle producer's stock valued at $680,000 after purchasing an additional 25 shares during the last quarter. Clear Trail Advisors LLC raised its stake in shares of 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 last quarter. Peirce Capital Management LLC lifted its holdings 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 valued at $697,000 after purchasing an additional 25 shares in the last quarter. Community Bank & Trust Waco Texas boosted 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 valued at $711,000 after buying an additional 26 shares during the last quarter. Finally, WealthTrust Axiom LLC boosted its position 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 buying an additional 26 shares during the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla is expanding beyond autos: Pacific Gas & Electric selected the company for SHARE, a large virtual power plant connecting thousands of residential energy devices. The deal supports Tesla’s energy-storage and grid-services strategy, although investors may view its financial impact as modest initially. Tesla PG&E grid deal
• Positive Sentiment: Tesla reportedly regained roughly 52% of the U.S. EV market through August as Ford and GM reduced their EV efforts. However, Tesla’s own sales were still lower, meaning the share gain appears driven partly by weaker competition rather than accelerating demand. Tesla U.S. EV market share
• Positive Sentiment: Tesla established a Vietnamese subsidiary authorized to import, distribute and sell vehicles, creating a formal entry point into a growing Southeast Asian EV market and potentially diversifying sales beyond China. Tesla Vietnam expansion
• Positive Sentiment: Virtuix said Tesla placed repeat orders for its Omni One Enterprise systems for the Optimus humanoid-robot program, offering an outside indication that Tesla continues developing robotics applications. Elon Musk also says Optimus could ship to customers in 2027, though revenue remains speculative. Tesla Optimus shipment plans
• Neutral Sentiment: Tesla’s October 1 Roadster event is generating significant attention, with Musk hinting at unusually advanced or possible SpaceX-related technology. The reveal could become a catalyst, but the nine-year delay has made investors skeptical until production timing and specifications are demonstrated. Tesla Roadster reveal
• Negative Sentiment: U.S. regulators are questioning whether Tesla properly self-certified the steering-wheel-free Cybercab and whether the vehicle complies with safety standards. The National Highway Traffic Safety Administration wants answers by September 30, raising certification, launch-timing and liability risks. Cybercab certification investigation
• Negative Sentiment: Reports that Cybercab rides can take substantially longer because the vehicles avoid highways reinforce concerns that Tesla’s current robotaxi service is limited and not yet ready for rapid scaling. Commentary has also contrasted Tesla’s rollout with Waymo’s more established operations. Tesla Cybercab rollout
• Negative Sentiment: At a valuation above 300 times earnings, Tesla remains highly dependent on future autonomy, robotics and energy growth. Skepticism over delayed products, competition and execution makes the stock vulnerable when new announcements do not immediately translate into commercial results.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on TSLA shares. BMO Capital Markets assumed coverage on Tesla in a research report on Monday, August 17th. They issued an "outperform" rating for the company. TD Cowen reissued a "buy" rating on shares of Tesla in a report on Friday, August 14th. Roth Capital restated a "buy" rating and issued a $505.00 target price on shares of Tesla in a report on Thursday, July 23rd. Robert W. Baird set a $475.00 target price on shares of Tesla in a research note on Monday, July 27th. Finally, William Blair reissued a "market perform" rating on shares of Tesla in a report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eighteen have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $414.68.

Insiders Place Their Bets

In related news, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction 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 transaction, the chief financial officer directly owned 25,972 shares in the company, valued at approximately $9,353,296.36. The trade was a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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.

Tesla Stock Performance

Shares of NASDAQ TSLA opened at $356.58 on Wednesday. The firm has a 50 day moving average of $351.57 and a 200 day moving average of $380.48. The company has a current ratio of 1.94, a quick ratio of 1.55 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $1.41 trillion, a price-to-earnings ratio of 330.17, a price-to-earnings-growth ratio of 18.12 and a beta of 1.84. Tesla, Inc. has a 12-month low of $297.38 and a 12-month high of $498.83.

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

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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