Tesla (NASDAQ:TSLA) Stock Price Up 2.2% - Still a Buy?

Key Points

• Tesla shares rose 2.2% to about $378.73, while third-quarter vehicle deliveries of roughly 487,000 exceeded consensus estimates by approximately 5%.
• Growth catalysts include a 50-truck Semi order from IMC Logistics and preliminary discussions with TSMC about a dedicated “Terafab” chip facility, though energy-storage deployments missed expectations.
• Valuation and execution risks remain significant: Tesla trades at a price-to-earnings ratio above 350, analysts remain mixed with an overall “Hold” rating, and concerns persist over shrinking margins and uncertain autonomy monetization.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report) traded up 2.2% during mid-day trading on Monday. The stock traded as high as $381.59 and last traded at $378.73. 40,425,196 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 51,727,941 shares. The stock had previously closed at $370.59.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Deliveries exceeded expectations: Tesla delivered approximately 487,000 vehicles in the third quarter, about 5% above consensus. Deliveries rose sequentially, supporting expectations that 2026 could mark the company’s first annual delivery increase since 2023. Tesla deliveries top consensus, but energy storage deployments miss estimates
• Positive Sentiment: Commercial-vehicle momentum: Tesla secured an order for 50 Semi trucks from IMC Logistics, providing evidence of potential fleet demand beyond the consumer vehicle market. Tesla Stock Lands 50-Truck Semi Deal as IMC Expands Electric Fleet
• Positive Sentiment: Chip-supply plans offer a longer-term catalyst: Elon Musk confirmed discussions with Taiwan Semiconductor Manufacturing Co. about a dedicated “Terafab” facility for Tesla, SpaceX and xAI. A dedicated supply arrangement could support Tesla’s AI-chip and autonomy ambitions, although the project remains preliminary. Musk confirms talks with TSMC over Terafab chip plant
• Neutral Sentiment: Investor positioning is mixed: Robinhood traders reportedly sold Tesla and other major technology stocks even as those shares rose, suggesting retail investors may be taking profits rather than adding exposure. Robinhood Traders Sell Big Tech
• Negative Sentiment: Energy storage missed estimates: While vehicle deliveries beat expectations, energy-storage deployments fell short of forecasts, highlighting weakness in one of Tesla’s key growth businesses. Tesla deliveries top consensus, but energy storage deployments miss estimates
• Negative Sentiment: Valuation remains a major risk: Analysts and market commentators argue that Tesla’s very high earnings multiple leaves little room for execution problems, especially as margins shrink and large investments in AI, robotaxis and humanoid robots have yet to produce substantial profits. HSBC raised its price target but retained a “Reduce” rating. Wall Street analyst sets Tesla stock price for the next 12 months
• Negative Sentiment: Autonomy execution remains uncertain: Analysts say Waymo is ahead in robotaxi deployment, while Tesla’s nighttime-driving limitations and reliance on future AI monetization create additional execution risk. Tesla delivered more cars than Wall Street expected

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Glj Research reiterated a "sell" rating on shares of Tesla in a report on Friday, September 4th. Citigroup reaffirmed a "market perform" rating on shares of Tesla in a research report on Wednesday, September 16th. KeyCorp upgraded Tesla to a "sector weight" rating in a research note on Monday, September 28th. Morgan Stanley restated a "reduce" rating on shares of Tesla in a research note on Monday, September 14th. Finally, Stifel Nicolaus set a $491.00 price objective on shares of Tesla and gave the stock a "buy" rating in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, eighteen have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $412.01.

Tesla Trading Up 2.2%

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.55. The company's fifty day moving average is $348.41 and its 200-day moving average is $377.38. The stock has a market cap of $1.50 trillion, a PE ratio of 350.68, a PEG ratio of 19.78 and a beta of 1.92.

Tesla (NASDAQ:TSLA - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $28.24 billion during the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period in the previous year, the company posted $0.33 earnings per share. On average, analysts predict that Tesla, Inc. will post 0.83 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the business's stock in a transaction that occurred 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 approximately $9,353,296.36. The trade was a 9.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 19.90% of the company's stock.

Institutional Investors Weigh In On Tesla

Institutional investors have recently modified their holdings of the business. State Street Corp raised its holdings in shares of Tesla by 2.4% during the second quarter. State Street Corp now owns 117,456,756 shares of the electric vehicle producer's stock valued at $49,402,312,000 after acquiring an additional 2,761,298 shares during the last quarter. Amundi increased its position in shares of Tesla by 14.0% during the first quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer's stock worth $8,243,513,000 after purchasing an additional 2,727,141 shares in the last quarter. Corient Private Wealth LLC raised its stake in Tesla by 3,205.5% in the 4th 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 purchasing an additional 20,810,386 shares during the last quarter. Legal & General Group Plc acquired a new position in Tesla in the 2nd quarter valued at $8,535,612,000. Finally, Invesco Ltd. lifted its holdings in Tesla by 14.0% in the 4th quarter. Invesco Ltd. now owns 16,980,122 shares of the electric vehicle producer's stock valued at $7,636,301,000 after purchasing an additional 2,082,813 shares in the last quarter. 66.20% of the stock is currently owned by institutional investors and hedge funds.

About Tesla

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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