Wedbush Issues Pessimistic Estimate for Tesla Earnings

Key Points

• Wedbush lowered its earnings per share estimate for Tesla's Q4 2025 from $0.51 to $0.45, maintaining an "Outperform" rating with a $500 price target.
• Tesla missed the consensus earnings estimate for the last quarter, reporting $0.40 EPS against an expectation of $0.43, alongside a revenue of $22.50 billion compared to $23.18 billion anticipated by analysts.
• Despite recent downgrades from multiple firms, Tesla maintains a consensus "Hold" rating, with a majority of analysts rating it as such, while its stock has a market cap of $1.02 trillion.

Tesla, Inc. (NASDAQ:TSLA - Free Report) - Stock analysts at Wedbush decreased their Q4 2025 EPS estimates for Tesla in a research report issued to clients and investors on Thursday, July 24th. Wedbush analyst D. Ives now expects that the electric vehicle producer will post earnings of $0.45 per share for the quarter, down from their prior forecast of $0.51. Wedbush has a "Outperform" rating and a $500.00 price target on the stock. The consensus estimate for Tesla's current full-year earnings is $2.56 per share. Wedbush also issued estimates for Tesla's Q1 2026 earnings at $0.47 EPS and Q4 2026 earnings at $0.66 EPS.

Tesla (NASDAQ:TSLA - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The electric vehicle producer reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.03). Tesla had a return on equity of 7.98% and a net margin of 6.54%. The firm had revenue of $22.50 billion for the quarter, compared to analysts' expectations of $23.18 billion. During the same period in the previous year, the company earned $0.52 earnings per share. The company's revenue was down 11.8% compared to the same quarter last year.

Other analysts also recently issued research reports about the stock. Cfra Research downgraded shares of Tesla from a "moderate buy" rating to a "hold" rating in a report on Tuesday, April 22nd. JPMorgan Chase & Co. cut their price target on shares of Tesla from $120.00 to $115.00 and set an "underweight" rating for the company in a report on Wednesday, April 23rd. BNP Paribas set a $137.00 target price on shares of Tesla and gave the company an "underperform" rating in a report on Wednesday, April 16th. Bank of America lifted their target price on shares of Tesla from $305.00 to $341.00 and gave the company a "neutral" rating in a report on Monday, July 21st. Finally, Roth Mkm dropped their target price on shares of Tesla from $450.00 to $395.00 and set a "buy" rating for the company in a report on Wednesday, April 23rd. Ten investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $303.31.

Tesla Price Performance

TSLA stock traded down $5.27 during mid-day trading on Monday, reaching $313.77. The company's stock had a trading volume of 19,395,083 shares, compared to its average volume of 107,573,352. The stock has a market cap of $1.01 trillion, a PE ratio of 181.69, a P/E/G ratio of 11.28 and a beta of 2.39. The company has a current ratio of 2.04, a quick ratio of 1.55 and a debt-to-equity ratio of 0.07. Tesla has a fifty-two week low of $182.00 and a fifty-two week high of $488.54. The company's 50 day moving average is $323.61 and its two-hundred day moving average is $313.14.

Insider Activity

In related news, Director Kimbal Musk sold 91,588 shares of the firm's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $357.39, for a total value of $32,732,635.32. Following the completion of the transaction, the director directly owned 1,463,220 shares of the company's stock, valued at approximately $522,940,195.80. This trade represents a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ira Matthew Ehrenpreis sold 477,572 shares of Tesla stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $357.30, for a total transaction of $170,636,475.60. Following the transaction, the director directly owned 855,394 shares of the company's stock, valued at approximately $305,632,276.20. This trade represents a 35.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 719,119 shares of company stock valued at $246,186,549. Insiders own 20.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TSLA. True Wealth Design LLC increased its position in shares of Tesla by 79.5% during the 4th quarter. True Wealth Design LLC now owns 70 shares of the electric vehicle producer's stock valued at $28,000 after purchasing an additional 31 shares during the last quarter. LGT Financial Advisors LLC bought a new stake in shares of Tesla in the 2nd quarter worth approximately $29,000. Navigoe LLC purchased a new stake in Tesla in the fourth quarter worth $37,000. Cherry Tree Wealth Management LLC boosted its holdings in Tesla by 86.3% in the first quarter. Cherry Tree Wealth Management LLC now owns 95 shares of the electric vehicle producer's stock worth $25,000 after acquiring an additional 44 shares in the last quarter. Finally, First PREMIER Bank raised its stake in shares of Tesla by 79.2% in the first quarter. First PREMIER Bank now owns 95 shares of the electric vehicle producer's stock worth $25,000 after purchasing an additional 42 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company's stock.

Tesla Company Profile

Tesla, Inc designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.