Shares of Tesla, Inc. (NASDAQ:TSLA) experienced a decline of 1.3% during trading on Tuesday, falling to a low of $432.36 before recovering slightly to $439.62. The trading session saw a total of 60,227,893 shares exchanged, which represents a significant drop of 40% from the average volume of 100,815,008 shares. Prior to this decline, the stock had closed at $445.23.
Analyst Ratings Impact Market Sentiment
Several equities analysts have recently provided updates on Tesla’s stock, influencing investor sentiment. Dbs Bank upgraded Tesla to a “hold” rating on November 5, 2023. Conversely, GLJ Research reiterated a “sell” rating in a report released on October 22, 2023. Barclays maintained a “negative” outlook but adjusted its price target from $275.00 to $350.00, as reported on October 16, 2023. In a more optimistic vein, Wedbush reaffirmed an “outperform” rating with a price target of $600.00 on November 5, 2023.
Overall, market analysts have a mixed view of Tesla’s performance. One analyst rates the stock as a Strong Buy, while twenty-one have issued Buy ratings, thirteen have assigned Hold ratings, and eleven have rated it as Sell. The consensus rating stands at “Hold,” with an average price target of $391.08, according to data from MarketBeat.
Financial Performance and Insider Trading
Tesla’s latest earnings report, released on October 23, 2023, revealed that the company posted earnings per share (EPS) of $0.50, surpassing the consensus estimate of $0.48 by $0.02. The company reported revenue of $28.10 billion for the quarter, exceeding analyst expectations of $24.98 billion. This represents an increase of 11.6% compared to the same quarter last year, although EPS has declined from $0.72 in the previous year.
Looking ahead, analysts predict that Tesla will achieve an EPS of $2.56 for the current fiscal year.
In related news, Tesla’s Chief Financial Officer, Vaibhav Taneja, sold 2,606 shares of the company on September 8, 2023, at an average price of $352.38, totaling approximately $918,302.28. After this transaction, Taneja retained 9,856 shares, valued at around $3,473,057.28. This sale represents a decrease of 20.91% in his holdings.
Additionally, Senior Vice President Xiaotong Zhu sold 20,000 shares on September 11, 2023, at an average price of $363.75, amounting to $7,275,000.00. Post-sale, Zhu owns 47,600 shares valued at approximately $17,314,500, marking a 29.59% reduction in their position. In total, insiders have sold 202,606 shares valued at about $75,588,902 over the last 90 days, with corporate insiders currently holding 19.90% of the stock.
Institutional Investment Trends
Recent movements among institutional investors reflect a cautious approach towards Tesla stock. Relyea Zuckerberg Hanson LLC increased its position by 0.4% in the third quarter, now owning 6,558 shares valued at $2,916,000. Similarly, Equita Financial Network Inc. raised its holdings by 2.8%, acquiring 855 shares worth $380,000.
Other institutional investors, such as VanderPol Investments L.L.C., Resonant Capital Advisors LLC, and Cloud Capital Management LLC, also reported incremental increases in their Tesla stock holdings. Currently, institutional investors and hedge funds collectively own 66.20% of Tesla’s shares.
Tesla continues to be a significant player in the electric vehicle market, designing, developing, and manufacturing vehicles and energy solutions both in the United States and internationally. The company operates through two main segments: Automotive and Energy Generation and Storage, reflecting its broad engagement in sustainable technology.
