Tesla, Inc. $TSLA Holdings Reduced by Convergence Financial LLC

Key Points

• Convergence Financial LLC cut its Tesla position by 73% in the third quarter, selling 27,444 shares and retaining 10,128 shares valued at approximately $3.6 million. Institutional investors still own 66.2% of Tesla.
• Analyst sentiment remains broadly positive but mixed: Tesla has a consensus rating of “Moderate Buy” and an average price target of $414.51, with recent ratings ranging from “Buy” to “Underperform.”
• Tesla slightly exceeded quarterly EPS expectations, reporting $0.48 versus $0.46 projected, while revenue of $28.05 billion was essentially in line with estimates and declined 0.2% year over year. Shares trade at a very high forward valuation, with a reported P/E ratio of 444.20.

Convergence Financial LLC lessened its position in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 73.0% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 10,128 shares of the electric vehicle producer's stock after selling 27,444 shares during the period. Convergence Financial LLC's holdings in Tesla were worth $3,594,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Legal & General Group Plc purchased a new stake in shares of Tesla during the 2nd quarter worth $8,535,612,000. Bank of New York Mellon Corp acquired a new position in shares of Tesla during the second quarter worth $6,083,630,000. Deutsche Bank AG purchased a new position in Tesla in the second quarter valued at $4,039,090,000. Canada Pension Plan Investment Board purchased a new position in Tesla in the second quarter valued at $3,144,509,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Tesla in the second quarter valued at $2,995,584,000. 66.20% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TSLA. Roth Capital reaffirmed a "buy" rating and set a $505.00 price target on shares of Tesla in a report on Thursday, July 23rd. The Goldman Sachs Group reaffirmed a "neutral" rating on shares of Tesla in a research report on Thursday, October 22nd. Deutsche Bank Aktiengesellschaft initiated coverage on Tesla in a report on Monday. They issued a "buy" rating on the stock. CLSA reissued an "underperform" rating on shares of Tesla in a research report on Monday. Finally, Monness Crespi & Hardt began coverage on Tesla in a research note on Monday. They set a "buy" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, seventeen have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $414.51.

Insider Buying and Selling at Tesla

In related news, CFO Vaibhav Taneja sold 2,606 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total value of $938,498.78. Following the completion of the sale, the chief financial officer directly owned 25,972 shares of the company's stock, valued at $9,353,296.36. This represents a 9.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 20.00% of the company's stock.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Barclays upgraded Tesla to Overweight with a $450 price target, arguing that the company’s potential extends beyond a SpaceX merger. Analysts cited electric vehicles, energy storage and Full Self-Driving subscriptions as independent growth drivers. Why Tesla’s Upside Is About More Than a SpaceX Merger
• Positive Sentiment: Optimism around robotaxis continued after Elon Musk said Tesla plans to expand service to Miami and Tampa beaches. ARK Invest also reaffirmed its highly bullish long-term price target, assigning most of Tesla’s projected future value to robotaxis. Elon Musk Says Tesla Robotaxi Expansion
• Positive Sentiment: Tesla’s battery-storage business is showing demand strength, with Megapack systems reportedly nearing a sellout through 2027. A growing battery-passport market could also benefit Tesla’s energy and compliance-related offerings. Tesla Is Nearing a Sellout of Megapack Systems
• Neutral Sentiment: Speculation about a Tesla-SpaceX merger remains a major market driver, but no transaction terms or agreement have been announced. Such a deal could provide strategic benefits while also creating dilution, governance and valuation concerns for Tesla shareholders. Elon Musk Says Merging SpaceX and Tesla Would Be a Good Idea
• Negative Sentiment: Recent positive free cash flow appears driven largely by lower-than-expected capital spending—$4.73 billion versus roughly $7.77 billion expected—rather than improved operations. Operating income reportedly fell 56% to $718 million, underscoring pressure on profitability while Tesla invests heavily in AI, robotaxis and Optimus. Tesla’s Free Cash Flow Just Turned Positive
• Negative Sentiment: Execution and regulatory concerns also weighed on sentiment: 80 Tesla drivers in South Korea reportedly face criminal referrals for unauthorized FSD activation, while commentary questioned the Roadster’s performance and the company’s ability to defend its autonomy lead against Waymo and Chinese rivals. Tesla’s extremely high earnings multiple leaves little room for disappointment. 80 Tesla Drivers Face Criminal Charges in South Korea

Tesla Price Performance

Shares of TSLA opened at $404.22 on Thursday. Tesla, Inc. has a 1-year low of $297.38 and a 1-year high of $498.83. The stock has a market cap of $1.60 trillion, a PE ratio of 444.20, a price-to-earnings-growth ratio of 23.62 and a beta of 1.92. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.74 and a quick ratio of 1.39. The firm has a fifty day moving average price of $367.47 and a 200 day moving average price of $386.26.

Tesla (NASDAQ:TSLA - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.02. Tesla had a return on equity of 3.03% and a net margin of 3.11%. The company had revenue of $28.05 billion for the quarter, compared to analyst estimates of $28.06 billion. During the same quarter last year, the company posted $0.50 earnings per share. The business's quarterly revenue was down .2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Tesla, Inc. will post 0.70 EPS for the current year.

Tesla Company Profile

Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.

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