Tesla (NASDAQ:TSLA) Shares Climb 1.5% – Should You Buy?

Tesla, Inc. (NASDAQ:TSLA)’s stock price was up 1.5% during trading on Tuesday. The company traded as high as $377.59 and last traded at $373.71. 30,618,995 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 50,619,957 shares. The stock had previously closed at $368.06.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported adjusted EPS of $0.48, above the $0.45 consensus estimate, while quarterly revenue was approximately $28.05 billion. The company also generated roughly $1.5 billion in positive free cash flow, a significant improvement over expectations for an outflow. Reuters Tesla third-quarter results
• Positive Sentiment: Management highlighted growing autonomy activity: FSD exceeded a 75% attach rate on new North American vehicles, Cybercab miles increased sharply in Austin, and Tesla says it plans to begin customer deliveries of the robotaxi by year-end. Reuters Cybercab plans
• Positive Sentiment: Bank of America reiterated a Buy rating and assigned a $460 price target, citing potential growth from FSD, robotaxis, Optimus and Megapack. Bank of America Tesla price target
• Neutral Sentiment: Elon Musk said Tesla and SpaceX are exploring a possible merger through independent committees. The deal could provide access to AI infrastructure and technology, but it remains uncertain and could create valuation, governance and dilution concerns for Tesla shareholders. Reuters Tesla-SpaceX merger talks
• Negative Sentiment: Tesla lowered its full-year capital-expenditure outlook to about $20 billion. Investors interpreted the pullback as potentially slowing the development of AI computing, autonomous driving and robotics—the businesses supporting much of Tesla’s valuation. Reuters Tesla spending pullback
• Negative Sentiment: Underlying results were less encouraging: vehicle deliveries declined year over year, revenue was essentially flat, energy revenue missed estimates, and operating income fell sharply as AI and research costs increased. Musk also said Optimus will require at least another year to reach full production scale, while unsupervised FSD for personal vehicles is targeted for 2027. Tesla earnings and delivery results

Wall Street Analyst Weigh In

TSLA has been the topic of several recent analyst reports. The Goldman Sachs Group reiterated a “neutral” rating on shares of Tesla in a research report on Thursday. Guggenheim started coverage on Tesla in a research note on Monday, June 29th. They issued a “neutral” rating on the stock. Tigress Financial restated a “buy” rating and issued a $550.00 price target on shares of Tesla in a report on Thursday, October 8th. Truist Financial set a $370.00 price objective on shares of Tesla and gave the company a “hold” rating in a research note on Thursday, July 23rd. Finally, Piper Sandler reissued an “overweight” rating and issued a $475.00 target price on shares of Tesla in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nineteen have issued a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $416.69.

Tesla Trading Up 3.4%

The company has a market capitalization of $1.53 trillion, a PE ratio of 357.85, a P/E/G ratio of 23.73 and a beta of 1.92. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.55 and a current ratio of 1.94. The business has a fifty day moving average price of $362.72 and a 200 day moving average price of $377.16.

Tesla (NASDAQ:TSLA) last issued its earnings results on Thursday, October 22nd. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. The business had revenue of $28.05 billion during the quarter, compared to analysts’ expectations of $28.06 billion. Tesla had a return on equity of 3.82% and a net margin of 3.67%. The company’s revenue for the quarter was down .2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.50 EPS. Analysts expect that Tesla, Inc. will post 0.71 EPS for the current fiscal year.

Insider Transactions at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total value of $938,498.78. Following the completion of the sale, the chief financial officer owned 25,972 shares of the company’s stock, valued at $9,353,296.36. This represents a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 19.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tesla

A number of hedge funds have recently made changes to their positions in TSLA. Clear Trail Advisors LLC increased its holdings in Tesla by 1.6% in the 1st quarter. Clear Trail Advisors LLC now owns 1,628 shares of the electric vehicle producer’s stock valued at $605,000 after purchasing an additional 25 shares in the last quarter. Peirce Capital Management LLC raised its position in Tesla by 1.5% in the second quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer’s stock valued at $697,000 after purchasing an additional 25 shares during the period. Retirement Planning Group LLC NY raised its position in Tesla by 3.8% in the first quarter. Retirement Planning Group LLC NY now owns 713 shares of the electric vehicle producer’s stock valued at $265,000 after purchasing an additional 26 shares during the period. Phillip James Consulting Co. lifted its stake in shares of Tesla by 8.7% during the first quarter. Phillip James Consulting Co. now owns 326 shares of the electric vehicle producer’s stock worth $121,000 after purchasing an additional 26 shares in the last quarter. Finally, Cadence Wealth Management LLC lifted its stake in shares of Tesla by 4.7% during the first quarter. Cadence Wealth Management LLC now owns 580 shares of the electric vehicle producer’s stock worth $216,000 after purchasing an additional 26 shares in the last quarter. Hedge funds and other institutional investors own 66.20% of the company’s stock.

Tesla Company Profile

Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.