Tesla, Inc. $TSLA Stock: RWQ Financial Management Services Inc. Cuts Holdings

Key Points

• RWQ Financial Management Services cut its Tesla holdings by 31.0% in the third quarter, selling 6,505 shares and retaining 14,455 shares valued at approximately $5.13 million. Tesla represents about 2.9% of the firm’s portfolio.
• Tesla shares were trading at $368.06, up 3.8%, with a market capitalization of roughly $1.45 trillion and a very high P/E ratio of 340.80. Institutional investors and hedge funds collectively own 66.2% of the company.
• Tesla’s latest quarterly results included revenue of $28.24 billion, above estimates, but adjusted earnings of $0.33 per share missed the $0.50 consensus. Analyst opinions remain mixed, resulting in an overall “Hold” rating and an average price target of $415.07.

RWQ Financial Management Services Inc. lessened its position in shares of Tesla, Inc. (NASDAQ:TSLA - Free Report) by 31.0% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 14,455 shares of the electric vehicle producer's stock after selling 6,505 shares during the period. Tesla makes up approximately 2.9% of RWQ Financial Management Services Inc.'s investment portfolio, making the stock its 15th largest position. RWQ Financial Management Services Inc.'s holdings in Tesla were worth $5,129,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Security National Bank of Sioux City Iowa IA acquired a new stake in Tesla during the 2nd quarter worth approximately $25,000. Friedenthal Financial boosted its stake in Tesla by 66.7% in the 1st quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer's stock valued at $28,000 after purchasing an additional 30 shares during the period. Harborfront Financial Group LLC bought a new stake in Tesla in the 2nd quarter valued at $34,000. Montgomery Financial Services LLC acquired a new position in Tesla in the 2nd quarter valued at $40,000. Finally, Lam Group Inc. acquired a new position in Tesla in the 1st quarter valued at $37,000. Institutional investors and hedge funds own 66.20% of the company's stock.

Tesla Trading Up 3.8%

Shares of TSLA stock opened at $368.06 on Tuesday. 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 stock has a market cap of $1.45 trillion, a P/E ratio of 340.80, a price-to-earnings-growth ratio of 22.59 and a beta of 1.92. The stock has a 50 day simple moving average of $360.72 and a 200 day simple moving average of $377.03. Tesla, Inc. has a 1 year low of $297.38 and a 1 year high of $498.83.

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 analysts' consensus estimates of $0.50 by ($0.17). Tesla had a return on equity of 3.82% and a net margin of 3.67%. The company had revenue of $28.24 billion for the quarter, compared to the consensus estimate of $26.42 billion. During the same quarter last year, the business earned $0.33 EPS. Tesla's revenue was up 25.5% on a year-over-year basis. On average, research analysts predict that Tesla, Inc. will post 0.71 earnings per share for the current fiscal year.

Insider Buying and Selling at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the company's 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 completion of the sale, the chief financial officer directly owned 25,972 shares in the company, valued at approximately $9,353,296.36. This represents a 9.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 19.90% of the company's stock.

Analyst Upgrades and Downgrades

TSLA has been the topic of several recent research reports. BNP Paribas Exane lowered their price objective on Tesla from $280.00 to $268.00 and set an "underperform" rating on the stock in a research report on Thursday, September 24th. Tigress Financial reissued a "buy" rating and set a $550.00 target price on shares of Tesla in a report on Thursday, October 8th. KeyCorp raised shares of Tesla to a "sector weight" rating in a research report on Monday, September 28th. Wells Fargo & Company restated a "buy" rating on shares of Tesla in a research note on Thursday, October 1st. Finally, HSBC restated a "reduce" rating and issued a $157.00 price target on shares of Tesla in a research note on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, sixteen have assigned a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $415.07.

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Roadster enthusiasm and SpaceX speculation supported sentiment. Tesla’s thruster-powered Roadster demonstration, along with Elon Musk’s claims about future autonomy and “sentience,” generated investor interest. Commentary also revived speculation that SpaceX could acquire or merge with Tesla, although analysts stressed that such a transaction would be complex and remains unconfirmed. Tesla's Roadster Reveal Hints at 2 Much Bigger Moves
• Positive Sentiment: Florida policy comments added to the Roadster catalyst. Florida Governor Ron DeSantis said he would work to make the flying Roadster legal in the state, helping Tesla outperform smaller EV peers. The commercial opportunity remains highly uncertain because Tesla has not established pricing, production scale or regulatory approval. Tesla Rises as DeSantis Vows to Make Flying Roadster Legal in Florida
• Positive Sentiment: Shareholders will vote on board continuity. Tesla asked investors to re-elect Musk, Chair Robyn Denholm and JB Straubel at the December annual meeting. The proposal maintains the current leadership structure, which may reassure supporters of Tesla’s AI, robotaxi and robotics strategy. Tesla Asks Shareholders to Re-elect Musk, Denholm and Straubel
• Neutral Sentiment: Q3 earnings are the immediate trading event. Tesla reports after Wednesday’s close. Estimates generally call for about $27.8 billion-$27.9 billion in revenue and roughly $0.43-$0.44 in adjusted EPS, below the prior-year EPS figure. Options markets imply a potentially large post-earnings move, making margin commentary, deliveries, FSD monetization and capital spending particularly important. How Much Tesla Stock Is Expected to Move After Earnings
• Negative Sentiment: Profitability and valuation remain major risks. Analysts expect earnings to decline, with gross-margin pressure and substantial spending on AI, chips, Optimus and robotaxis potentially limiting near-term profits. At a very elevated valuation, Tesla may need to materially exceed expectations to sustain the rebound. Tesla's Biggest Earnings Risk May Be Its Bullish Sentiment
• Positive Sentiment: A federal appeals court decision reduced legal overhang. A Ninth Circuit ruling decertified a class action involving Tesla’s self-driving claims, a potentially favorable development for litigation risk, although it does not eliminate all legal or regulatory exposure. US Appeals Court Overturns Class Action Lawsuit Over Tesla Self-Driving Claims

Tesla 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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