Tesla (NASDAQ:TSLA) Trading 3.5% Higher – Should You Buy?

Tesla, Inc. (NASDAQ:TSLA) shares were up 3.5% on Thursday . The stock traded as high as $310.87 and last traded at $308.85. 37,365,374 shares were traded during trading, a decline of 34% from the average daily volume of 56,452,520 shares. The stock had previously closed at $298.32.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Reports that Tesla could separate or sell its China operations to facilitate a potential merger with SpaceX have fueled speculation that investors could gain exposure to a broader artificial-intelligence, robotics and space conglomerate. Elon Musk called the China-sale report “fake news,” however, making the potential transaction highly uncertain. Tesla reportedly might sell its China business ahead of a SpaceX merger
• Positive Sentiment: Tesla’s production of its 10 millionth electric vehicle provides a notable scale milestone and reinforces its long-term manufacturing credentials. Rising global EV demand and higher gasoline prices could also support industry growth. Tesla made its 10 millionth EV
• Positive Sentiment: A broad technology rally, stronger results from Microsoft and Amazon, and an oversold condition helped improve sentiment toward Tesla after its post-earnings selloff. Reports also cited encouraging European safety data for supervised Full Self-Driving. Why is Tesla stock rising
• Neutral Sentiment: Speculation about Tesla and SpaceX merging remains a major valuation catalyst, but no deal has been confirmed. A transaction could expand Tesla’s AI and autonomy narrative while also creating substantial regulatory, geopolitical and execution complexities. A Tesla/SpaceX merger may be on the horizon
• Negative Sentiment: The National Highway Traffic Safety Administration opened a preliminary investigation into approximately 1.2 million Tesla vehicles over reported suspension failures that could cause loss of steering control. Potential recalls, repair costs and additional scrutiny pose risks. US auto safety regulator probes Tesla vehicles
• Negative Sentiment: Investors continue to question Tesla’s robotaxi outlook after Elon Musk missed several previously announced timelines. Delays weaken the near-term case for the company’s exceptionally high valuation and increase pressure on the core EV business. Elon Musk has missed his own robotaxi timelines
• Negative Sentiment: Tesla’s latest quarter showed an EPS miss, sharply lower margins and negative cash flow while capital spending on AI and autonomy is rising. The combination of weaker current earnings and heavy investment is making investors less tolerant of execution setbacks. Tesla after a rough quarter

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on TSLA shares. Piper Sandler dropped their target price on shares of Tesla from $500.00 to $450.00 and set an “overweight” rating on the stock in a report on Friday, July 24th. Barclays raised their price target on Tesla from $360.00 to $370.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 14th. Robert W. Baird set a $475.00 price objective on Tesla in a research report on Monday. Truist Financial set a $370.00 price target on shares of Tesla and gave the company a “hold” rating in a research report on Thursday, July 23rd. Finally, Glj Research reaffirmed a “sell” rating on shares of Tesla in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, nineteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $402.24.

Tesla Trading Up 0.8%

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.55. The stock’s 50-day moving average is $389.93 and its two-hundred day moving average is $397.91. The stock has a market cap of $1.23 trillion, a P/E ratio of 288.15, a price-to-earnings-growth ratio of 15.33 and a beta of 1.80.

Tesla (NASDAQ:TSLA) last posted its earnings results on Wednesday, July 22nd. The electric vehicle producer reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.17). The company had revenue of $28.24 billion for the quarter, compared to analysts’ expectations of $26.42 billion. Tesla had a net margin of 3.67% and a return on equity of 3.82%. The business’s revenue was up 25.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.33 earnings per share. Equities research analysts anticipate that Tesla, Inc. will post 0.89 EPS for the current year.

Insider Activity

In other news, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $402.20, for a total value of $1,048,133.20. Following the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at approximately $8,864,085.80. The trade was a 10.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 19.90% of the company’s stock.

Hedge Funds Weigh In On Tesla

Several institutional investors have recently added to or reduced their stakes in TSLA. Woodmont Investment Counsel LLC increased its position in Tesla by 1.2% in the fourth quarter. Woodmont Investment Counsel LLC now owns 2,124 shares of the electric vehicle producer’s stock worth $955,000 after purchasing an additional 25 shares during the last quarter. Aspect Partners LLC lifted its position in Tesla by 12.5% during the fourth quarter. Aspect Partners LLC now owns 225 shares of the electric vehicle producer’s stock valued at $101,000 after purchasing an additional 25 shares during the last quarter. Human Investing LLC grew its stake in shares of Tesla by 4.5% in the 4th quarter. Human Investing LLC now owns 578 shares of the electric vehicle producer’s stock worth $260,000 after buying an additional 25 shares in the last quarter. SilverOak Wealth Management LLC grew its stake in shares of Tesla by 2.3% in the 4th quarter. SilverOak Wealth Management LLC now owns 1,117 shares of the electric vehicle producer’s stock worth $502,000 after buying an additional 25 shares in the last quarter. Finally, Boston Trust Walden Corp raised its position in shares of Tesla by 0.7% during the 4th quarter. Boston Trust Walden Corp now owns 3,385 shares of the electric vehicle producer’s stock valued at $1,522,000 after buying an additional 25 shares in the last quarter. Hedge funds and other institutional investors own 66.20% of the company’s stock.

Tesla Company Profile

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.