Tesla (NASDAQ:TSLA) Trading 1.9% Higher – Time to Buy?

Tesla, Inc. (NASDAQ:TSLA) shot up 1.9% during mid-day trading on Wednesday . The stock traded as high as $420.34 and last traded at $417.2610. 53,775,718 shares traded hands during trading, a decline of 13% from the average session volume of 61,800,594 shares. The stock had previously closed at $409.38.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Software/AI monetization: Tesla has begun rolling out its Grok AI assistant to drivers in Australia and New Zealand, expanding subscription and software engagement that can lift recurring revenue and margins. Tesla (TSLA) Rolls Out Its Grok AI Assistant to Australia and New Zealand Drivers
• Positive Sentiment: Optimus/Robotics narrative keeps bulls invested: Multiple bullish takes argue Optimus and robotaxi ambitions could materially expand Tesla’s addressable market (the “iPhone moment” thesis), supporting today’s upside despite execution risk. Has Tesla’s ‘iPhone Moment’ Arrived?
• Neutral Sentiment: Valuation debate: Tesla’s P/E remains extremely high, creating a delicate setup — investors are split between paying up for future AI/robotics growth and worrying about limited margin for error. That mixed view is keeping volatility elevated. Tesla’s P/E Is Near a 5-Year High—Buy Signal or Panic Signal?
• Negative Sentiment: Legal and safety overhangs: A court upheld a roughly $243M jury verdict tied to an Autopilot crash, reinforcing near-term liability risk and regulatory scrutiny that can pressure the stock. Tesla loses crucial Autopilot ruling that could cost hundreds of millions
• Negative Sentiment: Tussle with California DMV: Tesla has sued the California DMV to overturn a false‑advertising ruling around FSD; the dispute amplifies regulatory uncertainty and reputational risk. Tesla sues California DMV to reverse ruling that company engaged in false advertising on FSD
• Negative Sentiment: Sales pressure in Europe and competition: Tesla’s EU registrations fell sharply (cited ~17% in January) while BYD is gaining share — this weakens near-term vehicle revenue and supports concerns about demand. Tesla’s Europe problem keeps getting worse. Here’s why
• Negative Sentiment: Demand and margin stress: Tesla trimmed Cybertruck pricing and is testing shorter promotional windows, while management signals a major capex ramp (>$20B) to support Robotaxi/Optimus — higher spending plus soft vehicle demand raises execution and cash‑flow risk. As Tesla Cuts Cybertruck Prices, Should You Buy TSLA Stock? Tesla Refocuses On AI And Robotics As Legal Risks Mount

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. China Renaissance upped their price objective on Tesla from $380.00 to $382.00 and gave the company a “hold” rating in a research report on Monday, February 2nd. Wedbush reissued an “outperform” rating and set a $600.00 target price on shares of Tesla in a research report on Thursday, January 29th. Bank of America raised their price target on Tesla from $341.00 to $471.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 29th. CICC Research lifted their price objective on shares of Tesla from $450.00 to $500.00 and gave the stock an “outperform” rating in a research note on Thursday, December 18th. Finally, Barclays reiterated a “neutral” rating on shares of Tesla in a research report on Wednesday, February 18th. Eighteen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and nine have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $408.09.

Tesla Stock Performance

The firm has a market cap of $1.57 trillion, a PE ratio of 386.35, a price-to-earnings-growth ratio of 14.13 and a beta of 1.86. The business has a 50 day simple moving average of $437.53 and a two-hundred day simple moving average of $420.08. The company has a quick ratio of 1.77, a current ratio of 2.16 and a debt-to-equity ratio of 0.08.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings results on Wednesday, January 28th. The electric vehicle producer reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.05. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The firm had revenue of $24.90 billion for the quarter, compared to analysts’ expectations of $24.75 billion. During the same period in the prior year, the business posted $0.73 earnings per share. The business’s revenue for the quarter was down 3.1% on a year-over-year basis. As a group, equities research analysts forecast that Tesla, Inc. will post 2.56 earnings per share for the current fiscal year.

Insider Transactions at Tesla

In other news, CFO Vaibhav Taneja sold 2,637 shares of Tesla stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the completion of the sale, the chief financial officer owned 13,757 shares of the company’s stock, valued at approximately $6,107,145.01. The trade was a 16.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director James R. Murdoch sold 60,000 shares of the firm’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $445.40, for a total value of $26,724,000.00. Following the transaction, the director owned 577,031 shares in the company, valued at $257,009,607.40. The trade was a 9.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 119,457 shares of company stock valued at $53,501,145. 19.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in Tesla by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer’s stock worth $116,443,762,000 after buying an additional 6,538,720 shares in the last quarter. State Street Corp boosted its position in Tesla by 0.9% during the 4th quarter. State Street Corp now owns 114,842,934 shares of the electric vehicle producer’s stock valued at $51,647,164,000 after acquiring an additional 1,080,085 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Tesla by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 65,700,975 shares of the electric vehicle producer’s stock valued at $29,426,070,000 after acquiring an additional 375,946 shares during the period. Capital World Investors raised its position in shares of Tesla by 5.8% in the 3rd quarter. Capital World Investors now owns 44,035,949 shares of the electric vehicle producer’s stock worth $19,583,547,000 after acquiring an additional 2,403,019 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Tesla during the 4th quarter worth $17,128,100,000. 66.20% of the stock is currently owned by institutional investors.

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.