Tesla (NASDAQ:TSLA) Given New $400.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut Tesla’s price target from $417 to $400 while keeping an equal weight rating, implying about 24% upside from the prior close.
• Tesla’s latest earnings showed mixed results: quarterly revenue beat expectations at $28.24 billion and rose 25.5% year over year, but EPS came in at $0.33, below the $0.50 consensus.
• Analyst sentiment remains split, with Tesla holding a Hold consensus and an average price target of $406.42, while recent news highlights continued optimism around robotaxi expansion and long-term AI/Optimus growth.

Tesla (NASDAQ:TSLA - Get Free Report) had its price objective reduced by stock analysts at Morgan Stanley from $417.00 to $400.00 in a research report issued to clients and investors on Thursday. The brokerage currently has an "equal weight" rating on the electric vehicle producer's stock. Morgan Stanley's price objective points to a potential upside of 24.15% from the company's previous close.

A number of other analysts also recently weighed in on TSLA. Sanford C. Bernstein upgraded shares of Tesla from an "underperform" rating to an "outperform" rating in a report on Friday, June 5th. Evercore raised shares of Tesla from a "hold" rating to an "outperform" rating in a research note on Friday, June 5th. Barclays boosted their price objective on shares of Tesla from $360.00 to $370.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 14th. Citizens Jmp assumed coverage on Tesla in a report on Thursday, July 9th. They set a "market perform" rating on the stock. Finally, HSBC reiterated a "hold" rating on shares of Tesla in a report on Monday, June 15th. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Tesla currently has an average rating of "Hold" and a consensus price target of $406.42.

Tesla Price Performance

NASDAQ:TSLA traded down $51.81 during trading hours on Thursday, reaching $322.20. The stock had a trading volume of 42,639,536 shares, compared to its average volume of 56,312,199. The stock has a market capitalization of $1.21 trillion, a PE ratio of 296.50, a PEG ratio of 12.72 and a beta of 1.80. Tesla has a 52 week low of $297.82 and a 52 week high of $498.83. The company has a 50 day moving average price of $405.39 and a two-hundred day moving average price of $404.00. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.04.

Tesla (NASDAQ:TSLA - Get Free Report) last posted its earnings results on Thursday, July 23rd. The electric vehicle producer reported $0.33 earnings per share for the quarter, missing analysts' consensus estimates of $0.50 by ($0.17). Tesla had a net margin of 3.95% and a return on equity of 4.89%. The business had revenue of $28.24 billion during the quarter, compared to analysts' expectations of $26.42 billion. During the same period last year, the business posted $0.33 earnings per share. The company's revenue for the quarter was up 25.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Tesla will post 1.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the firm's stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the sale, the director directly owned 48,399 shares in the company, valued at approximately $18,300,145.89. This trade represents a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction that occurred 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 sale, the chief financial officer directly owned 22,039 shares in the company, valued at approximately $8,864,085.80. The trade was a 10.57% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 32,015 shares of company stock valued at $12,383,640 in the last ninety days. Insiders own 19.90% of the company's stock.

Institutional Investors Weigh In On Tesla

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Tesla during the fourth quarter worth $17,128,100,000. Corient Private Wealth LLC grew its holdings in shares of Tesla by 3,205.5% during the fourth quarter. Corient Private Wealth LLC now owns 21,459,599 shares of the electric vehicle producer's stock worth $9,650,811,000 after purchasing an additional 20,810,386 shares during the last quarter. Bank of America Corp DE grew its stake in Tesla by 56.0% during the 4th quarter. Bank of America Corp DE now owns 20,755,605 shares of the electric vehicle producer's stock worth $9,334,211,000 after buying an additional 7,450,766 shares during the last quarter. Cardano Risk Management B.V. lifted its stake in Tesla by 882.8% in the fourth quarter. Cardano Risk Management B.V. now owns 8,202,060 shares of the electric vehicle producer's stock valued at $3,688,630,000 after buying an additional 7,367,507 shares during the last quarter. Finally, Vanguard Group Inc. boosted its holdings in shares of Tesla by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer's stock valued at $116,443,762,000 after acquiring an additional 6,538,720 shares during the period. 66.20% of the stock is owned by institutional investors and hedge funds.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record quarterly revenue and strong vehicle deliveries, showing that demand for its core business remains solid. Tesla Inc (TSLA) Q2 2026 Earnings Call Highlights
• Positive Sentiment: The company expanded its unsupervised robotaxi service into Orlando and Tampa, reinforcing the long-term autonomy growth story. Tesla expands robotaxi service to Orlando, Tampa ahead of earnings
• Positive Sentiment: Elon Musk and Tesla continue to emphasize upside from robotaxis, Optimus, and AI, which keeps the long-term bull case intact. Musk Calls Optimus ‘Biggest Product Ever’ as Tesla Stock Drops after Q2 Earnings Miss

About Tesla

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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