Morgan Stanley Lowers Tesla (NASDAQ:TSLA) Price Target to $400.00

Tesla (NASDAQ:TSLA) had its price target decreased by investment analysts at Morgan Stanley from $417.00 to $400.00 in a report released on Thursday, Marketbeat reports. The firm presently has an “equal weight” rating on the electric vehicle producer’s stock. Morgan Stanley’s price objective suggests a potential upside of 27.78% from the stock’s previous close.

Several other brokerages also recently weighed in on TSLA. Truist Financial set a $370.00 price target on Tesla and gave the stock a “hold” rating in a report on Thursday. Tigress Financial began coverage on shares of Tesla in a research report on Monday, April 27th. They set a “buy” rating for the company. William Blair restated a “market perform” rating on shares of Tesla in a research note on Thursday, July 2nd. Zacks Research raised shares of Tesla from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Finally, Needham & Company LLC reissued a “hold” rating on shares of Tesla in a report on Thursday. Twenty-one equities research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Tesla currently has a consensus rating of “Hold” and an average target price of $404.95.

Tesla Stock Down 2.1%

TSLA stock opened at $313.03 on Thursday. The company has a fifty day moving average price of $400.74 and a 200 day moving average price of $402.53. Tesla has a 12 month low of $297.82 and a 12 month high of $498.83. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.62. The company has a market cap of $1.18 trillion, a price-to-earnings ratio of 289.85, a price-to-earnings-growth ratio of 10.73 and a beta of 1.80.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings data on Wednesday, July 22nd. The electric vehicle producer reported $0.33 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.17). Tesla had a net margin of 3.67% and a return on equity of 3.82%. The company had revenue of $28.24 billion for the quarter, compared to analysts’ expectations of $26.42 billion. During the same period in the prior year, the company earned $0.33 earnings per share. The firm’s revenue was up 25.5% on a year-over-year basis. Sell-side analysts expect that Tesla will post 1.34 earnings per share for the current year.

Insider Activity at Tesla

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the sale, the director owned 48,399 shares in the company, valued at $18,300,145.89. This represents a 35.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the transaction, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at $8,864,085.80. The trade was a 10.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 32,015 shares of company stock worth $12,383,640 in the last three months. Corporate insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

Institutional investors and hedge funds have recently made changes to their positions in the business. Networth Advisors LLC purchased a new stake in shares of Tesla in the fourth quarter valued at about $26,000. Davidson Capital Management Inc. raised its position in shares of Tesla by 79.4% during the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock worth $27,000 after purchasing an additional 27 shares during the last quarter. Turning Point Benefit Group Inc. purchased a new stake in Tesla in the 3rd quarter valued at approximately $30,000. Prism Advisors Inc. purchased a new position in Tesla during the fourth quarter worth $30,000. Finally, Texas Capital Bancshares Inc TX acquired a new position in shares of Tesla in the third quarter worth $31,000. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Record quarterly revenue and deliveries show Tesla is still growing its top line. Tesla Just Delivered Record Sales—So Why Did the Stock Sell Off?
• Positive Sentiment: Some investors remain bullish on the long term, with ARK/Cathie Wood buying the dip after the post-earnings slump. Cathie Wood’s Ark Bought the Dip in Tesla Stock
• Neutral Sentiment: Tesla continued to promote robotaxi and Optimus progress, but the market appears to want tangible revenue and execution milestones before rewarding those ambitions. Musk’s bad week: Tesla suffers worst slump since 2022, SpaceX drops ahead of Starship test flight
• Negative Sentiment: Q2 earnings missed expectations, and Tesla reported negative free cash flow as spending surged. Tesla’s once-bullish tone on robotaxis shifts
• Negative Sentiment: Management’s large 2026 capex plan and AI spending push are spooking investors over margins and cash burn. Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’
• Negative Sentiment: Analysts have been lowering price targets following the report, reflecting near-term profitability concerns. Tesla Stock Plunges as Analysts Slash Price Targets after Q2 Earnings Miss

About Tesla

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.