Tesla's (TSLA) "Buy" Rating Reiterated at Roth Capital

Key Points

• Roth Capital reiterated a “buy” rating on Tesla and set a $505 price target, implying about 58% upside from the stock’s current level.
• Tesla’s stock fell sharply in the session, trading at $318.77 amid heavy volume, even though the company still has a consensus Wall Street rating of “Hold” and an average price target of $406.42.
• The company recently posted mixed quarterly results: revenue of $28.24 billion beat estimates and rose year over year, but EPS of $0.33 missed expectations, adding to debate over margins and profitability.

Tesla (NASDAQ:TSLA - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at Roth Capital in a report issued on Thursday,Benzinga reports. They currently have a $505.00 price objective on the electric vehicle producer's stock. Roth Capital's price objective would suggest a potential upside of 58.42% from the company's current price.

TSLA has been the topic of a number of other reports. Canaccord Genuity Group set a $410.00 price objective on shares of Tesla and gave the company a "buy" rating in a research note on Thursday. President Capital raised their target price on shares of Tesla from $424.00 to $428.00 and gave the company a "buy" rating in a research note on Monday, April 27th. Evercore upgraded shares of Tesla from a "hold" rating to an "outperform" rating in a research report on Friday, June 5th. William Blair reaffirmed a "market perform" rating on shares of Tesla in a research note on Thursday, July 2nd. Finally, Citigroup started coverage on shares of Tesla in a report on Thursday, July 9th. They issued a "market perform" rating for the company. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Tesla presently has a consensus rating of "Hold" and an average price target of $406.42.

Tesla Stock Performance

TSLA stock traded down $55.23 on Thursday, reaching $318.77. The company's stock had a trading volume of 48,163,923 shares, compared to its average volume of 56,349,996. Tesla has a 52 week low of $297.82 and a 52 week high of $498.83. The company has a market capitalization of $1.20 trillion, a P/E ratio of 292.88, a price-to-earnings-growth ratio of 12.72 and a beta of 1.80. The firm has a fifty day moving average of $405.39 and a two-hundred day moving average of $404.00. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62.

Tesla (NASDAQ:TSLA - Get Free Report) last announced its earnings results on Thursday, July 23rd. The electric vehicle producer reported $0.33 earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $26.42 billion. During the same period in the previous year, the firm earned $0.33 EPS. The firm's revenue was up 25.5% on a year-over-year basis. As a group, analysts predict that Tesla will post 1.34 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of Tesla stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the transaction, the director directly owned 48,399 shares in the company, valued at $18,300,145.89. The trade was a 35.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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 dated Monday, June 8th. The stock was sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the transaction, the chief financial officer directly owned 22,039 shares in the company, valued at $8,864,085.80. This represents 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 over the last 90 days. 19.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Networth Advisors LLC purchased a new stake in shares of Tesla in the fourth quarter valued at $26,000. Davidson Capital Management Inc. raised its position in Tesla by 79.4% during the fourth 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. purchased a new stake in Tesla in the 3rd quarter worth about $30,000. Prism Advisors Inc. acquired a new stake in Tesla during the 4th quarter worth about $30,000. Finally, Texas Capital Bancshares Inc TX purchased a new position in Tesla during the 3rd quarter valued at about $31,000. 66.20% of the stock is owned by hedge funds and other institutional investors.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record Q2 deliveries and revenue of $28.24 billion, topping estimates and marking more than $100 billion in trailing 12-month revenue. Reuters article
• Positive Sentiment: Management highlighted continued momentum in robotaxi and FSD efforts, with the company expanding unsupervised robotaxi service into new Florida markets and emphasizing long-term autonomy upside. CNBC article
• Neutral Sentiment: Analysts remain split, with several firms keeping neutral/hold views even as some bullish analysts argue the stock could benefit if autonomy and Optimus milestones become more concrete. TipRanks article
• Negative Sentiment: Q2 adjusted EPS of $0.33 missed expectations, margins compressed, and free cash flow turned negative for the first time in more than two years, raising concerns about profitability and cash generation. Reuters article
• Negative Sentiment: Tesla confirmed a roughly $25 billion full-year capex plan, with heavy spending on AI infrastructure, robotaxis, batteries, and manufacturing weighing on near-term earnings and sparking price-target cuts from multiple Wall Street firms. TipRanks article
• Negative Sentiment: Several reports say investors are worried Tesla is leaning on discounts to drive sales while betting the business on future robotaxi and Optimus returns, which is pressuring sentiment today. Investopedia article

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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