Tesla’s stock (NASDAQ: TSLA) received a reaffirmed “sell” rating from analysts at DZ Bank in a note to investors issued on Tuesday. This update is part of a broader examination of the company’s stock by various financial institutions, suggesting a divided sentiment regarding Tesla’s market performance.
Analysts from Wedbush recently expressed a more optimistic view, reiterating an “outperform” rating and setting a price target of $600.00 per share in a report released on December 15, 2023. Conversely, Needham & Company LLC has assigned a “hold” rating to Tesla, while Piper Sandler issued an “overweight” rating alongside a price target of $500.00 on December 9. In a contrasting perspective, Deutsche Bank Aktiengesellschaft raised its price objective for Tesla from $470.00 to $500.00 and categorized the stock as a “buy” on December 19. UBS Group also maintained a “sell” rating, setting a target price of $247.00.
The consensus among analysts shows a blend of opinions: one analyst rates the stock as a Strong Buy, twenty give it a Buy rating, fourteen categorize it as Hold, and nine recommend Sell. According to data from MarketBeat.com, Tesla currently holds a consensus rating of “Hold” with an average target price of $408.36.
Quarterly Earnings and Financial Performance
Tesla reported its quarterly earnings on October 23, 2023, revealing earnings per share (EPS) of $0.50, surpassing analysts’ expectations of $0.48 by $0.02. The company achieved a return on equity of 6.61% and a net margin of 5.51%. Revenue for the quarter reached $28.10 billion, exceeding the consensus estimate of $24.98 billion.
Comparatively, during the same period last year, Tesla reported an EPS of $0.72, indicating a year-over-year decline in earnings. Nevertheless, the company’s revenue experienced an increase of 11.6% compared to the previous year. Analysts predict Tesla will report an EPS of 2.56 for the current fiscal year.
Insider Trading Activity
Recent insider trading activity has also drawn attention. CFO Vaibhav Taneja sold 2,637 shares on December 8 at an average price of $443.93, amounting to a total of $1,170,643.41. This sale reduced Taneja’s ownership stake to 13,757 shares, valued at approximately $6,107,145.01—a decrease of 16.09%.
Additionally, Director Kimbal Musk sold 56,820 shares on December 9 for an average of $450.66, totaling $25,606,501.20. Following this transaction, Musk holds 1,391,615 shares, worth around $627,145,215.90, reflecting a 3.92% reduction in his position. Currently, insiders own 19.90% of Tesla’s stock.
Institutional investors and hedge funds are actively adjusting their stakes in Tesla. Brighton Jones LLC increased its position by 11.8% in the fourth quarter, acquiring an additional 9,293 shares to own 87,929 shares valued at $35,509,000. Similarly, Revolve Wealth Partners LLC raised its stake by 21.2%, now holding 5,317 shares worth $2,147,000 after purchasing 931 shares.
Bison Wealth LLC significantly boosted its holdings by 52.2%, owning 10,368 shares valued at $4,187,000 after acquiring 3,558 shares. Other firms, including Ashton Thomas Private Wealth LLC and Faithward Advisors LLC, also increased their investments in Tesla during the first quarter.
Overall, institutional investors and hedge funds now hold 66.20% of Tesla’s stock, reflecting strong interest from larger financial entities.
Tesla, Inc. designs, manufactures, and sells electric vehicles and energy products. Founded in 2003, the company has grown into a significant player in the clean energy sector under the leadership of CEO Elon Musk. Its mission is to accelerate the world’s transition to sustainable energy, focusing on electric drivetrains, battery technology, renewable energy products, and software.
