Tesla (TSLA) Lowered to Sell at Zacks Investment Research

Tesla (NASDAQ:TSLA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Saturday.

According to Zacks, “Tesla announced Model 3 production delays twice leading to huge mismatch between actual number of reservation and delivery. Tesla attributed production bottlenecks for this slow production. The company caters to a niche market and has been recording losses over the last few years. Moreover, the company is facing supply chain problems which are restricting its ability to increase production. High research and development costs, low number of chargers, high requirement of capital expenditure and opposition to direct selling in some states are other headwinds.”

Other equities research analysts also recently issued reports about the stock. Vetr upgraded shares of Tesla from a “strong sell” rating to a “sell” rating and set a $320.97 price objective on the stock in a research note on Friday, October 13th. Sanford C. Bernstein reiterated a “market perform” rating and set a $265.00 price objective on shares of Tesla in a research note on Tuesday, October 3rd. Global Equities Research reiterated a “buy” rating and set a $485.00 price objective on shares of Tesla in a research note on Wednesday, November 29th. Jefferies Group downgraded shares of Tesla from an “in-line” rating to an “underperform” rating and reduced their price objective for the stock from $312.00 to $240.00 in a research note on Friday, October 27th. Finally, KeyCorp reiterated a “hold” rating on shares of Tesla in a research note on Friday, November 10th. Twelve investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and eleven have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $329.48.

Tesla (TSLA) traded up $5.45 during mid-day trading on Friday, hitting $350.02. 4,871,140 shares of the company traded hands, compared to its average volume of 5,840,000. The company has a debt-to-equity ratio of 1.66, a current ratio of 1.09 and a quick ratio of 0.71. Tesla has a fifty-two week low of $242.01 and a fifty-two week high of $389.61. The firm has a market capitalization of $59,760.00, a P/E ratio of -40.89 and a beta of 0.94.

Tesla (NASDAQ:TSLA) last released its quarterly earnings results on Wednesday, November 1st. The electric vehicle producer reported ($2.92) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($3.09) by $0.17. Tesla had a negative net margin of 13.09% and a negative return on equity of 24.88%. The business had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $2.94 billion. During the same period in the prior year, the company posted $0.71 earnings per share. Tesla’s revenue was up 29.9% compared to the same quarter last year. equities research analysts anticipate that Tesla will post -11.38 earnings per share for the current fiscal year.

In other Tesla news, VP Eric Branderiz sold 1,736 shares of the stock in a transaction that occurred on Tuesday, October 24th. The shares were sold at an average price of $339.49, for a total transaction of $589,354.64. Following the completion of the sale, the vice president now owns 1,736 shares of the company’s stock, valued at approximately $589,354.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP John Douglas Field sold 1,000 shares of the stock in a transaction that occurred on Tuesday, January 9th. The shares were sold at an average price of $334.87, for a total transaction of $334,870.00. Following the sale, the vice president now directly owns 20,128 shares of the company’s stock, valued at approximately $6,740,263.36. The disclosure for this sale can be found here. Insiders have sold a total of 15,692 shares of company stock valued at $5,026,873 in the last three months. Insiders own 23.10% of the company’s stock.

Hedge funds have recently made changes to their positions in the company. Investec Asset Management LTD grew its position in shares of Tesla by 78.0% during the 3rd quarter. Investec Asset Management LTD now owns 3,690 shares of the electric vehicle producer’s stock worth $1,259,000 after buying an additional 1,617 shares during the period. Smith Moore & CO. grew its position in shares of Tesla by 56.3% during the 3rd quarter. Smith Moore & CO. now owns 972 shares of the electric vehicle producer’s stock worth $332,000 after buying an additional 350 shares during the period. WINTON GROUP Ltd acquired a new stake in shares of Tesla during the 2nd quarter worth approximately $681,000. Fjarde AP Fonden Fourth Swedish National Pension Fund grew its position in shares of Tesla by 2.1% during the 3rd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 38,569 shares of the electric vehicle producer’s stock worth $13,156,000 after buying an additional 784 shares during the period. Finally, Arrow Financial Corp grew its position in shares of Tesla by 13.7% during the 3rd quarter. Arrow Financial Corp now owns 9,338 shares of the electric vehicle producer’s stock worth $3,186,000 after buying an additional 1,127 shares during the period. 57.13% of the stock is owned by institutional investors.

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Tesla Company Profile

Tesla, Inc, formerly Tesla Motors, Inc, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage.

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