Sumitomo Mitsui DS Asset Management Company Ltd Grows Stock Position in Tesla, Inc. $TSLA

Key Points

• Sumitomo Mitsui DS Asset Management increased its Tesla stake by 1.5% in the second quarter to 403,974 shares valued at approximately $169.9 million. Institutional investors and hedge funds collectively own 66.2% of Tesla.
• Tesla’s growth outlook is centered on autonomy and commercial vehicles, including approval to operate up to 5,000 autonomous vehicles in Nevada and plans to expand its Semi truck in Europe. However, a recall of nearly 3 million vehicles in China and questions surrounding autonomy safety add regulatory and reputational risks.
• Tesla shares were reported up 5.1%, but the company trades at a lofty valuation of roughly 336 times earnings. Recent quarterly revenue exceeded estimates, while EPS missed expectations, and analysts maintain a consensus “Hold” rating with an average price target of $401.74.

Sumitomo Mitsui DS Asset Management Company Ltd boosted its holdings in Tesla, Inc. (NASDAQ:TSLA - Free Report) by 1.5% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 403,974 shares of the electric vehicle producer's stock after acquiring an additional 6,073 shares during the period. Tesla accounts for about 1.2% of Sumitomo Mitsui DS Asset Management Company Ltd's investment portfolio, making the stock its 14th largest position. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Tesla were worth $169,911,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Crestwood Advisors Group LLC raised its holdings in shares of Tesla by 34.7% in the fourth quarter. Crestwood Advisors Group LLC now owns 19,567 shares of the electric vehicle producer's stock worth $8,799,000 after acquiring an additional 5,039 shares during the last quarter. Calamos Wealth Management LLC boosted its stake in shares of Tesla by 5.9% during the fourth quarter. Calamos Wealth Management LLC now owns 41,907 shares of the electric vehicle producer's stock valued at $18,846,000 after acquiring an additional 2,341 shares during the last quarter. Private Capital Advisors Inc. boosted its stake in shares of Tesla by 139.3% during the fourth quarter. Private Capital Advisors Inc. now owns 21,331 shares of the electric vehicle producer's stock valued at $9,593,000 after acquiring an additional 12,417 shares during the last quarter. Wealthquest Corp purchased a new stake in Tesla during the 4th quarter worth about $1,035,000. Finally, Knights of Columbus Asset Advisors LLC raised its stake in Tesla by 34.8% in the 4th quarter. Knights of Columbus Asset Advisors LLC now owns 64,481 shares of the electric vehicle producer's stock valued at $28,998,000 after purchasing an additional 16,652 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company's stock.

Insiders Place Their Bets

In related news, CFO Vaibhav Taneja sold 2,606 shares of the company's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the completion of the sale, the chief financial officer directly owned 22,039 shares of the company's stock, valued at approximately $8,864,085.80. This represents a 10.57% decrease in their position. The sale 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.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Nevada regulators approved Tesla’s application to operate up to 5,000 fully autonomous vehicles during the first year, clearing a path for a Las Vegas robotaxi launch. The approval strengthens the investment case for Tesla’s autonomy strategy and could provide an important commercial test for its Cybercab platform. Nevada approves Tesla fleet of 5,000 fully autonomous vehicles
• Positive Sentiment: Tesla is preparing to showcase and expand its Semi truck in Europe, including at September’s IAA Transportation event. A reported order for 500 Semis from Einride and plans to scale Nevada production support expectations that commercial vehicles could become a meaningful new growth engine. Tesla Semi truck expansion into Europe
• Positive Sentiment: Recent Tesla commentary has emphasized confidence in scaling Cybercab operations and a potential step-change from its FSD V15 software. Investors view robotaxis, autonomy and the Semi as necessary growth businesses to support Tesla’s premium valuation as automotive growth matures. JPMorgan on Tesla Cybercab and FSD V15
• Neutral Sentiment: Analysts and investors continue debating whether Tesla’s roughly 292-times earnings valuation adequately reflects future robotaxi, Semi and artificial-intelligence growth. Supporters see substantial long-term upside, while skeptics argue the valuation leaves little room for execution delays or disappointing adoption. Tesla Robotaxi and Semi valuation analysis
• Negative Sentiment: Tesla will voluntarily recall nearly 3 million vehicles in China to address emergency door-release and driver-monitoring concerns. Although the fix is expected to be software-based and other automakers are involved, the recall adds regulatory, safety and reputational risk in a key market. Tesla China recall
• Negative Sentiment: Reports that Tesla has ended Solar Roof tile operations highlight the company’s retreat from a business that failed to achieve expected scale. Separately, questions about Autopilot crash-data disclosures and a robotaxi incident in Austin could make investors more cautious about Tesla’s readiness for unsupervised autonomy. Tesla Solar Roof shutdown

Tesla Stock Up 5.1%

Shares of NASDAQ:TSLA opened at $362.86 on Friday. The stock has a 50-day simple moving average of $365.62 and a 200-day simple moving average of $387.31. The stock has a market capitalization of $1.43 trillion, a P/E ratio of 335.98, a PEG ratio of 18.32 and a beta of 1.83. Tesla, Inc. has a 1 year low of $297.38 and a 1 year 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.

Tesla (NASDAQ:TSLA - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The electric vehicle producer reported $0.33 earnings per share (EPS) 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 analyst estimates of $26.42 billion. During the same period in the previous year, the company earned $0.33 EPS. Tesla's revenue was up 25.5% on a year-over-year basis. Equities analysts forecast that Tesla, Inc. will post 0.88 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on TSLA. William Blair reiterated a "market perform" rating on shares of Tesla in a report on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft set a $420.00 price objective on shares of Tesla in a research note on Monday, July 27th. Guggenheim began coverage on shares of Tesla in a research report on Monday, June 29th. They set a "neutral" rating on the stock. UBS Group set a $460.00 target price on shares of Tesla in a research note on Thursday, July 23rd. Finally, Citizens Jmp started coverage on Tesla in a report on Thursday, July 9th. They issued a "market perform" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, nineteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $401.74.

Tesla Company 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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