Tesla (NASDAQ:TSLA) Shares Up 3.4% on Strong Earnings

Tesla, Inc. (NASDAQ:TSLA)’s stock price shot up 3.4% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $388.84 and last traded at $386.47. 43,742,481 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 50,577,703 shares. The stock had previously closed at $373.71.

The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.03. Tesla had a return on equity of 3.07% and a net margin of 3.11%. The firm had revenue of $28.05 billion for the quarter, compared to analyst estimates of $28.06 billion. During the same quarter last year, the firm posted $0.50 EPS. The business’s revenue was down .2% on a year-over-year basis.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: European September registrations reportedly surged, offering evidence that Tesla’s regional demand may be improving despite weakness in its home market. Tesla Europe Sales Surge
• Positive Sentiment: Full Self-Driving subscriptions increased 67%, with more than 75% of new North American deliveries reportedly including paid FSD, strengthening the case for higher-margin software revenue. Tesla’s FSD Subscriptions Surge 67%
• Positive Sentiment: Fort Bend County commissioners approved Tesla’s “Project Crystal Sun” initiative in Texas, potentially supporting the company’s energy and infrastructure ambitions. Project Crystal Sun Approval
• Positive Sentiment: Some bullish analysts continue to see substantial upside based on robotaxis, FSD, Optimus humanoid robots and Megapack demand. Tesla also reportedly has much of its 2027 Megapack capacity committed. Analyst Predicts 60% Returns
• Neutral Sentiment: Elon Musk said Tesla and SpaceX formed committees to study a potential combination. The proposal could provide technology and financing synergies, but valuation, regulatory approval, conflicts of interest and China-related issues make completion uncertain. SpaceX-Tesla Merger Chatter
• Negative Sentiment: Third-quarter adjusted EPS beat estimates, but revenue was essentially flat year over year, automotive revenue fell 3%, energy-generation and storage revenue dropped 16%, and operating income declined sharply. The results reinforced concerns that Tesla’s core businesses are not growing fast enough to support its very high valuation. Tesla Q3 Revenue Trends
• Negative Sentiment: Tesla reduced its 2026 capital-expenditure outlook to about $20 billion from more than $25 billion. Investors view the cut as potentially prudent, but it also raises doubts about the pace of AI, robotics and autonomy development. Tesla Spending Pullback
• Negative Sentiment: Tesla abandoned plans to sell the Cybertruck in Australia and New Zealand and will refund reservations, highlighting commercialization and regulatory challenges for the vehicle. Cybertruck Australia Cancellation

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on TSLA shares. Stifel Nicolaus set a $475.00 target price on shares of Tesla in a research report on Thursday. HSBC reaffirmed a “reduce” rating and issued a $157.00 price target on shares of Tesla in a research note on Monday, October 5th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Tesla in a report on Monday. BMO Capital Markets began coverage on Tesla in a research note on Monday, August 17th. They set an “outperform” rating for the company. Finally, Citizens Jmp initiated coverage on Tesla in a report on Thursday, July 9th. They set a “market perform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, twenty have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $408.61.

Insider Buying and Selling

In related news, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total transaction of $938,498.78. Following the transaction, the chief financial officer owned 25,972 shares in the company, valued at approximately $9,353,296.36. This trade represents a 9.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TSLA. State Street Corp raised its stake in Tesla by 2.4% during the second quarter. State Street Corp now owns 117,456,756 shares of the electric vehicle producer’s stock worth $49,402,312,000 after purchasing an additional 2,761,298 shares during the period. Legal & General Group Plc acquired a new stake in shares of Tesla during the 2nd quarter worth approximately $8,535,612,000. Amundi raised its position in shares of Tesla by 14.0% during the 1st quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer’s stock valued at $8,243,513,000 after buying an additional 2,727,141 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of Tesla during the 2nd quarter valued at approximately $6,083,630,000. Finally, Bamco Inc. NY lifted its holdings in Tesla by 5.0% in the second quarter. Bamco Inc. NY now owns 12,524,752 shares of the electric vehicle producer’s stock valued at $5,267,911,000 after acquiring an additional 591,243 shares during the last quarter. Hedge funds and other institutional investors own 66.20% of the company’s stock.

Tesla Stock Down 0.8%

The company has a market capitalization of $1.47 trillion, a PE ratio of 344.46, a price-to-earnings-growth ratio of 24.54 and a beta of 1.92. The company has a quick ratio of 1.55, a current ratio of 1.94 and a debt-to-equity ratio of 0.09. The firm has a 50-day moving average of $363.41 and a two-hundred day moving average of $377.25.

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.