HSBC Lowers Price Expectations for Tesla Stock

Tesla (NASDAQ:TSLA) has seen a decrease in its price target as indicated by a research note from HSBC. The bank has lowered its price objective from $165.00 to $130.00 and has classified the stock with a "reduce" rating. This new price target suggests a potential downside of 52.22% from the current trading price of Tesla.

Market Reactions to Analyst Ratings

Several other research analysts have also recently provided their evaluations of Tesla. Benchmark began coverage on Tesla with a "buy" rating and a price objective of $475.00. On the other hand, Guggenheim reduced its price target from $175.00 to $170.00 while maintaining a "sell" rating. Glj Research reaffirmed a "buy" rating for Tesla shares, while Morgan Stanley adjusted their target from $430.00 down to $410.00 but still holds an "overweight" rating. Additionally, Cantor Fitzgerald upgraded Tesla from a "neutral" to an "overweight" rating with a new price target at $425.00. A total of nine analysts rate the stock as a sell, eight as hold, twenty-one as buy, and one as strong buy. Overall, according to MarketBeat.com, Tesla currently has a consensus rating of "Hold" with an average price target of $319.12.

Tesla's Current Stock Performance

The stock opened at $272.06 on Thursday, and over the past year, it has fluctuated between a low of $138.80 and a high of $488.54. Currently, Tesla boasts a market capitalization of approximately $875.09 billion. It has a price-to-earnings ratio of 133.36, a price-to-earnings growth ratio of 5.86, and a beta of 2.50. The company's 50-day moving average stands at $327.40, while the 200-day moving average is at $321.69. Financial indicators show a quick ratio of 1.61, a current ratio of 2.02, and a low debt-to-equity ratio of 0.08.

Recent Earnings and Insider Activity

Tesla last reported its quarterly earnings on January 29, where it posted earnings per share (EPS) of $0.66, missing market expectations, which were set at $0.74. The company also had a return on equity of 10.31% along with a net margin of 7.26%. Analysts estimate that Tesla's EPS for the current year should reach 2.56.

In addition to the earnings report, there have been significant insider transactions. Director James R. Murdoch sold 54,776 shares at an average price of $240.79, totaling over $13 million. After this sale, Murdoch still holds 477,011 shares, valued at nearly $115 million. Another significant sale came from Director Kathleen Wilson-Thompson, who sold 100,000 shares at an average price of $411.63 for approximately $41 million. After this transaction, she retained 5,400 shares. In total, insiders sold around 477,228 shares worth over $166 million last quarter, holding 20.70% of the stock collectively.

Trends Among Institutional Investors

Institutional investors have been active in adjusting their stakes in Tesla recently. Norges Bank has purchased a notable stake valued at about $14.42 billion. Meanwhile, FMR LLC increased its holdings by 40.1% in the last quarter, now owning approximately 34.66 million shares worth nearly $14 billion. Other investors, such as Strategic Financial Concepts LLC and Massachusetts Financial Services Co. MA, also significantly expanded their shares in Tesla, indicating strong institutional interest.

Overview of Tesla, Inc.

Tesla, Inc. is involved in the design, development, manufacturing, leasing, and selling of electric vehicles, as well as energy generation and storage systems worldwide. Its operations are divided into two segments: Automotive and Energy Generation and Storage. The automotive segment not only encompasses the sale of electric vehicles but also includes automotive regulatory credits and a variety of other services.

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