Tesla (NASDAQ:TSLA) Stock Price Down 1.3% Following Analyst Downgrade

Key Points

• Tesla shares fell 1.3% after JPMorgan cut its price target from $445 to $415 while maintaining a Neutral rating. The stock’s consensus rating remains Hold, with an average target price of $410.98.
• Analyst sentiment is mixed, with 21 Buy, 20 Hold and five Sell ratings. Tesla’s elevated valuation, including a price-to-earnings ratio above 326, leaves the shares vulnerable to slower growth and margin pressure.
• CFO Vaibhav Taneja sold 2,606 shares worth approximately $938,499 to cover tax obligations related to vested equity awards; insiders still own 19.9% of the company, while institutional investors own 66.2%.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report)'s stock price traded down 1.3% on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $445.00 to $415.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Tesla traded as low as $351.67 and last traded at $352.84. 31,627,799 shares were traded during trading, a decline of 39% from the average session volume of 51,942,848 shares. The stock had previously closed at $357.45.

Several other research analysts have also recently weighed in on the stock. HSBC reissued a "hold" rating on shares of Tesla in a report on Monday, June 15th. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Tesla in a research report on Friday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Tesla in a research note on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft set a $420.00 price target on Tesla in a research note on Monday, July 27th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Tesla in a report on Thursday, September 24th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, twenty have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $410.98.

Insider Buying and Selling

In other Tesla 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 value of $938,498.78. Following the completion of the transaction, the chief financial officer directly owned 25,972 shares of the company's stock, valued at $9,353,296.36. The trade was a 9.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 19.90% of the stock is currently owned by company insiders.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Semi enters volume production: Tesla has begun producing and delivering its long-awaited Semi at a Nevada factory designed for up to 50,000 trucks annually. Record diesel prices could improve the Semi’s operating-cost advantage for commercial fleets with access to inexpensive charging, creating a potential multibillion-dollar growth opportunity over time. Tesla’s Semi Is Finally Here—But Will It Move the Stock?
• Positive Sentiment: Additional European FSD approval: Croatia authorized Tesla’s supervised Full Self-Driving system, expanding the technology’s European footprint to seven countries. The approval supports Tesla’s autonomy strategy, although Croatia’s market is relatively small and investors are looking for broader European authorization. Tesla receives approval to roll out self-driving software in Croatia
• Neutral Sentiment: Q3 deliveries are the next major catalyst: Tesla is expected to release third-quarter delivery figures at the end of the week. Estimates reportedly range from approximately 422,000 to 482,000 vehicles, with some forecasts indicating a year-over-year decline. Strong results could ease concerns, while a miss may intensify pressure on the shares. Tesla’s Q3 deliveries loom large as the Roadster slips again
• Negative Sentiment: Roadster unveiling delayed again: Tesla postponed the second-generation Roadster reveal to October 15 because of severe weather. The latest delay revives concerns about execution and the timing of Tesla’s future growth products, particularly ahead of the delivery report. Tesla Stock Dips as Roadster Reveal Delayed Again
• Negative Sentiment: European FSD rollout faces regulatory hurdles: An EU-wide decision has reportedly been delayed until December, while a safety group urged regulators to reject Tesla’s system over concerns that its speed-offset function could allow vehicles to exceed posted limits. This limits the immediate commercial impact of the Croatia approval. Safety group urges EU to reject Tesla FSD over speed offset
• Negative Sentiment: Valuation and analyst caution remain overhangs: JPMorgan cut its Tesla price target to $415 while maintaining a Neutral rating, citing delivery and market weakness. Tesla’s very high earnings multiple leaves the stock sensitive to slower growth, margin pressure and broader market weakness. JPMorgan Adjusts Price Target on Tesla

Institutional Investors Weigh In On Tesla

Several institutional investors and hedge funds have recently bought and sold shares of the company. State Street Corp increased its stake in shares of Tesla by 2.4% in the 2nd quarter. State Street Corp now owns 117,456,756 shares of the electric vehicle producer's stock valued at $49,402,312,000 after purchasing an additional 2,761,298 shares during the last quarter. Amundi lifted its position in shares of Tesla by 14.0% during the 1st quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer's stock worth $8,243,513,000 after buying an additional 2,727,141 shares during the last quarter. Corient Private Wealth LLC grew its position in Tesla by 3,205.5% in the fourth quarter. Corient Private Wealth LLC now owns 21,459,599 shares of the electric vehicle producer's stock valued at $9,650,811,000 after acquiring an additional 20,810,386 shares during the last quarter. Legal & General Group Plc acquired a new position in Tesla during the second quarter worth about $8,535,612,000. Finally, Invesco Ltd. lifted its holdings in shares of Tesla by 14.0% in the fourth quarter. Invesco Ltd. now owns 16,980,122 shares of the electric vehicle producer's stock worth $7,636,301,000 after acquiring an additional 2,082,813 shares during the last quarter. Institutional investors own 66.20% of the company's stock.

Tesla Trading Down 1.3%

The company has a market capitalization of $1.39 trillion, a price-to-earnings ratio of 326.71, a P/E/G ratio of 18.79 and a beta of 1.84. 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 business's 50 day moving average price is $347.48 and its two-hundred day moving average price is $378.49.

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

Tesla Company Profile

Tesla, Inc NASDAQ: TSLA designs, manufactures and sells electric vehicles, energy storage systems and solar energy products. Its vehicle lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck and Tesla Semi. The company also develops vehicle software and driver-assistance features, operates a global Supercharger network and provides related vehicle services.

Tesla's energy business offers battery storage products for residential, commercial and utility customers, including Powerwall and Megapack, as well as solar panels and solar roofing products.

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