Tesla (NASDAQ:TSLA) Given New $475.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada trimmed its price target on Tesla to $475 (from $480) but kept an outperform rating, implying about a 27% upside from the prior close.
• Tesla's Q1 results showed an EPS beat ($0.41 vs. $0.39) and positive free cash flow with software/subscription growth, but revenue slightly missed and management's guidance for $20–25B capex and hardware (HW3) upgrade costs spooked investors and sent the stock lower.
• Analyst sentiment is mixed—18 Buys, 14 Holds and 9 Sells—with a consensus target of $396.29 and an average rating of Hold, contrasting with some bullish individual price targets.

Tesla (NASDAQ:TSLA - Get Free Report) had its price target cut by stock analysts at Royal Bank Of Canada from $480.00 to $475.00 in a research note issued to investors on Thursday,MarketScreener reports. The firm presently has an "outperform" rating on the electric vehicle producer's stock. Royal Bank Of Canada's target price would suggest a potential upside of 27.00% from the stock's previous close.

TSLA has been the topic of a number of other reports. DZ Bank restated a "sell" rating on shares of Tesla in a research note on Thursday, January 29th. Robert W. Baird cut their price target on shares of Tesla from $548.00 to $538.00 and set an "outperform" rating for the company in a report on Thursday, April 2nd. Morgan Stanley set a $415.00 price objective on shares of Tesla and gave the stock an "equal weight" rating in a report on Thursday, January 29th. Tigress Financial started coverage on shares of Tesla in a research report on Thursday, February 12th. They set a "buy" rating and a $550.00 price target for the company. Finally, President Capital dropped their price objective on Tesla from $500.00 to $424.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Eighteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and nine have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $396.29.

Tesla Stock Down 3.5%

TSLA stock opened at $374.01 on Thursday. The stock has a market capitalization of $1.40 trillion, a PE ratio of 346.30, a price-to-earnings-growth ratio of 12.22 and a beta of 1.91. The company has a fifty day moving average of $387.63 and a 200-day moving average of $421.62. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.77 and a current ratio of 2.16. Tesla has a one year low of $249.20 and a one year high of $498.83.

Tesla (NASDAQ:TSLA - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.02. The business had revenue of $22.39 billion for the quarter, compared to analyst estimates of $22.96 billion. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The business's revenue was up 15.8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.27 earnings per share. As a group, analysts expect that Tesla will post 1.37 EPS for the current year.

Insider Buying and Selling

In related news, CFO Vaibhav Taneja sold 2,264 shares of the company's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $397.03, for a total transaction of $898,875.92. Following the transaction, the chief financial officer owned 18,106 shares of the company's stock, valued at approximately $7,188,625.18. This represents a 11.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Kathleen Wilson-Thompson sold 25,809 shares of the business's stock in a transaction on Monday, March 30th. The shares were sold at an average price of $359.33, for a total value of $9,273,947.97. Following the completion of the transaction, the director owned 33,860 shares of the company's stock, valued at $12,166,913.80. This trade represents a 43.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 53,804 shares of company stock valued at $20,865,598. Company insiders own 19.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Networth Advisors LLC acquired a new position in Tesla during the fourth quarter worth approximately $26,000. Davidson Capital Management Inc. grew its stake in shares of Tesla by 79.4% during the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer's stock valued at $27,000 after buying an additional 27 shares during the period. Turning Point Benefit Group Inc. acquired a new stake in shares of Tesla during the 3rd quarter worth $30,000. Manning & Napier Advisors LLC purchased a new position in shares of Tesla in the 3rd quarter worth $29,000. Finally, Prism Advisors Inc. purchased a new stake in Tesla during the fourth quarter valued at about $30,000. Institutional investors and hedge funds own 66.20% of the company's stock.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q1 profit beat and cash surprise — Adjusted EPS beat estimates ($0.41) and Tesla reported positive free cash flow for the quarter, giving near‑term earnings credibility. Business Wire: Q1 Results
• Positive Sentiment: Software & services traction — Full Self‑Driving (supervised) subscriptions and “services & other” revenue showed meaningful growth, supporting higher‑margin recurring revenue potential. TechCrunch: FSD subscription growth
• Neutral Sentiment: Robotaxi & Optimus progress — Tesla expanded robotaxi service and reiterated Optimus timelines (v3 unveiling mid‑summer). These are long‑dated optionality items that can justify valuation but remain uncertain in near term. Earnings Call Transcript
• Neutral Sentiment: Stable crypto position — Tesla retained ~ $895M in Bitcoin on its balance sheet, limiting a forced-sale risk but leaving exposure to crypto mark‑to‑market swings. Yahoo: Bitcoin holdings
• Negative Sentiment: Massive capex raise ($20–25B+) — Musk told investors 2026 capex will jump into the $20B+–$25B range for AI, chips, Terafab and robotics; management expects cash flow to turn negative for the rest of 2026. That guidance spooked investors and is the primary reason shares reversed gains. Reuters: $25B spending plan
• Negative Sentiment: Hardware & upgrade disclosures — Management acknowledged cars with HW3 won’t support fully unsupervised FSD without upgrades, implying additional costs and slower monetization of autonomy for existing owners. Benzinga: HW3 limitation
• Negative Sentiment: Revenue vs. deliveries mix and inventory — Q1 revenue slightly missed some estimates and deliveries lagged expectations, leaving concerns about demand momentum and inventory build‑up. Reuters: revenue 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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