Fluent Financial LLC has significantly increased its investment in Tesla, Inc. (NASDAQ: TSLA), raising its stake by an impressive 238.6% during the third quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission, Fluent Financial now holds 2,655 shares of the electric vehicle manufacturer, following the acquisition of an additional 1,871 shares. As of the end of the reporting period, these holdings were valued at approximately $1,181,000.
Other institutional investors have also adjusted their positions in Tesla, reflecting a broader trend among hedge funds. For instance, DKM Wealth Management Inc. boosted its Tesla holdings by 54.7%, now owning 2,755 shares valued at around $1,225,000 after purchasing 974 shares in the same quarter. Similarly, Tlwm increased its position by 2.3%, bringing its total to 8,087 shares worth about $3,596,000. Sound Income Strategies LLC and BNC Wealth Management LLC also reported increases of 9.7% and 1.5%, respectively.
Tesla’s stock performance has shown resilience, opening at $481.20 on Monday. The company has a market capitalization of $1.60 trillion and a price-to-earnings (P/E) ratio of 320.80. Over the past year, Tesla has experienced a low of $214.25 and a high of $495.28. The company reported a 50-day moving average of $439.98 and a 200-day moving average of $381.14.
In its latest earnings report, released on October 23, 2023, Tesla announced earnings of $0.50 per share, surpassing analysts’ expectations of $0.48. The company’s revenue for the quarter reached $28.10 billion, exceeding forecasts of $24.98 billion. Tesla’s net margin stood at 5.51% with a return on equity of 6.61%. This marks an 11.6% increase in revenue compared to the same quarter last year.
Market Trends and Institutional Insights
Recent market sentiment towards Tesla has leaned positively as analysts adjust their projections. Deutsche Bank has raised its target price for Tesla shares to $500, accompanied by bullish notes from firms such as Mizuho and CICC. Concurrently, Tesla has committed approximately $1.2 billion to battery cell production in Germany, aiming for an 8 GWh target by 2027. This move is seen as a strategic investment that enhances localization and improves long-term margins.
The company is also advancing its autonomous vehicle initiatives, with reports of production-ready units of its Robotaxi and Cybercab seen on streets, reinforcing the market’s confidence in Tesla’s autonomy strategy. Additionally, Tesla evaded a potential fine of €11 million in Italy related to range claims, alleviating some legal pressures.
Nevertheless, some challenges persist. Regulatory scrutiny remains high, particularly concerning Autopilot and Full Self-Driving (FSD) marketing practices. Actions taken by California authorities and proposed federal regulations could pose risks for Tesla, especially with rising consumer safety complaints.
Recent Insider Activity and Analyst Ratings
In related news, Tesla’s CFO, Vaibhav Taneja, sold 2,637 shares on December 8, 2023, at an average price of $443.93, totaling approximately $1,170,643.41. Following the sale, Taneja retains 13,757 shares valued at around $6.1 million. Additionally, Director Kimbal Musk sold 56,820 shares on December 9, 2023, for a total of about $25.6 million.
Analysts have varied views on Tesla’s stock performance. DZ Bank reaffirmed a “sell” rating, while Evercore ISI raised its target price from $235 to $300 with a neutral rating. Piper Sandler maintained an “overweight” rating and issued a target of $500. Currently, Tesla holds an average rating of “Hold” among analysts, with a consensus price target of $404.14.
As Tesla continues to navigate a rapidly changing market landscape, its strategic decisions and investor behaviors will likely play a crucial role in shaping its future trajectory.
