Wells Fargo & Company Cuts Tesla (NASDAQ:TSLA) Price Target to $125.00

Tesla (NASDAQ:TSLA) had its price objective trimmed by Wells Fargo & Company from $130.00 to $125.00 in a report published on Thursday morning,Benzinga reports. The firm currently has an underweight rating on the electric vehicle producer’s stock.

TSLA has been the subject of several other reports. Wall Street Zen raised Tesla from a “sell” rating to a “hold” rating in a research note on Saturday, October 25th. Benchmark restated a “buy” rating on shares of Tesla in a report on Thursday, October 23rd. Barclays reissued a “neutral” rating on shares of Tesla in a report on Friday, January 23rd. President Capital cut their price target on Tesla from $529.00 to $517.00 and set a “buy” rating for the company in a research note on Tuesday, January 6th. Finally, Industrial Alliance Securities set a $300.00 price target on Tesla in a report on Monday, October 13th. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and eight have assigned a Sell rating to the stock. According to MarketBeat, Tesla presently has an average rating of “Hold” and a consensus target price of $409.58.

Tesla Price Performance

TSLA stock opened at $430.41 on Thursday. Tesla has a 52-week low of $214.25 and a 52-week high of $498.83. The stock has a market cap of $1.43 trillion, a price-to-earnings ratio of 398.53, a price-to-earnings-growth ratio of 7.11 and a beta of 1.83. The business has a fifty day moving average of $447.69 and a two-hundred day moving average of $408.17. The company has a quick ratio of 1.67, a current ratio of 2.16 and a debt-to-equity ratio of 0.08.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.05. The firm had revenue of $24.90 billion during the quarter, compared to analysts’ expectations of $24.75 billion. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The firm’s quarterly revenue was down 3.1% on a year-over-year basis. During the same quarter last year, the company posted $0.73 EPS. As a group, research analysts anticipate that Tesla will post 2.56 earnings per share for the current year.

Insider Activity

In related news, Director Kimbal Musk sold 56,820 shares of the company’s stock in a transaction on Tuesday, December 9th. The stock was sold at an average price of $450.66, for a total value of $25,606,501.20. Following the completion of the transaction, the director directly owned 1,391,615 shares in the company, valued at approximately $627,145,215.90. This represents a 3.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director James R. Murdoch sold 60,000 shares of the stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the transaction, the director owned 577,031 shares in the company, valued at approximately $257,009,607.40. The trade was a 9.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 119,457 shares of company stock valued at $53,501,145 over the last quarter. Company insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Brighton Jones LLC grew its stake in shares of Tesla by 11.8% in the fourth quarter. Brighton Jones LLC now owns 87,929 shares of the electric vehicle producer’s stock valued at $35,509,000 after buying an additional 9,293 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in Tesla by 21.2% in the 4th quarter. Revolve Wealth Partners LLC now owns 5,317 shares of the electric vehicle producer’s stock worth $2,147,000 after acquiring an additional 931 shares during the period. Bison Wealth LLC grew its position in Tesla by 52.2% in the fourth quarter. Bison Wealth LLC now owns 10,368 shares of the electric vehicle producer’s stock valued at $4,187,000 after acquiring an additional 3,558 shares in the last quarter. Sivia Capital Partners LLC raised its stake in shares of Tesla by 9.1% during the second quarter. Sivia Capital Partners LLC now owns 12,135 shares of the electric vehicle producer’s stock valued at $3,855,000 after purchasing an additional 1,011 shares during the period. Finally, AGP Franklin LLC lifted its position in shares of Tesla by 21.2% during the second quarter. AGP Franklin LLC now owns 4,861 shares of the electric vehicle producer’s stock worth $1,544,000 after purchasing an additional 851 shares in the last quarter. Hedge funds and other institutional investors own 66.20% of the company’s stock.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: SpaceX merger talk fuels optimism that Elon Musk could further consolidate his tech assets, a scenario investors view as value-accretive for Tesla (merger talk helped push TSLA higher). Tesla jumps as SpaceX merger talks fuel Musk empire consolidation hopes (Reuters)
• Positive Sentiment: Q4 beats and clear robotaxi/FSD progress: Tesla topped EPS and revenue estimates, disclosed 1.1M active FSD subs and reiterated Cybercab/robotaxi production targets — evidence that software and services can offset weaker vehicle volume. Could Tesla’s Q4 Earnings Fuel the Next Rally? (MarketBeat)
• Positive Sentiment: Investment in xAI and AI positioning: Tesla disclosed a multi‑billion involvement with Musk’s xAI and is pushing chip/TeraFab plans — reinforcing the market view of Tesla as a “physical AI” play rather than a pure auto OEM. Tesla reveals $2 billion investment in Elon Musk’s xAI (Fortune)
• Neutral Sentiment: Model S/X discontinuation and factory retooling — strategic for long‑term robotics capacity but implies short-term restructuring and transition risk; impact depends on execution and timing. Tesla Kills Legacy Models: Analyst Response Is Meh (MarketBeat)
• Neutral Sentiment: Mixed analyst reactions and target churn — some firms raised targets on the AI/robotics story while others trimmed them, leaving consensus sentiment split and volatility likely to persist.
• Negative Sentiment: Massive capex and cash‑burn risk: management guided to >$20B capex to reshuffle factories for robots, Cybercab and batteries — a heavy near‑term cash demand that could pressure margins and free cash flow. Tesla plans $20 billion capital spending spree (Reuters)
• Negative Sentiment: First annual revenue decline and softer vehicle deliveries raise near‑term execution concerns — investors worry Optimus/robotaxi revenue is far out and that margins could be pressured during the transition.
• Negative Sentiment: Notable bearish analyst moves (e.g., JPMorgan cut to underweight with a $145 target) increase downside headline risk and may cap rallies until clarity on capex pacing and robot/robotaxi ramps arrives.

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.