Tesla (TSLA) Downgraded by Zacks Investment Research to Sell

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

TSLA has been the subject of several other research reports. ValuEngine upgraded shares of Tesla from a “sell” rating to a “hold” rating in a research report on Wednesday, December 6th. Sanford C. Bernstein set a $265.00 price objective on shares of Tesla and gave the company a “hold” rating in a research report on Monday, November 13th. Barclays reiterated a “sell” rating on shares of Tesla in a research report on Sunday, October 15th. Royal Bank of Canada lowered their price objective on shares of Tesla from $345.00 to $340.00 and set a “sector perform” rating for the company in a research report on Thursday, November 2nd. Finally, Vetr upgraded shares of Tesla from a “strong sell” rating to a “sell” rating and set a $282.88 price objective for the company in a research report on Thursday, November 2nd. Twelve analysts have rated the stock with a sell rating, twelve have given a hold rating and eleven have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $329.48.

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

Tesla (NASDAQ:TSLA) last released its quarterly earnings data 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 during the quarter, compared to analyst estimates of $2.94 billion. During the same quarter last year, the business earned $0.71 earnings per share. Tesla’s quarterly revenue was up 29.9% compared to the same quarter last year. research analysts anticipate that Tesla will post -11.38 EPS for the current fiscal year.

In other news, Director Kimbal Musk sold 2,190 shares of Tesla stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $330.29, for a total value of $723,335.10. Following the transaction, the director now owns 154,419 shares of the company’s stock, valued at approximately $51,003,051.51. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP John Douglas Field sold 600 shares of Tesla stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $301.60, for a total transaction of $180,960.00. Following the completion of the transaction, the vice president now directly owns 21,424 shares in the company, valued at approximately $6,461,478.40. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,692 shares of company stock worth $5,026,873. Insiders own 23.10% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Harfst & Associates Inc. grew its position in shares of Tesla by 4.9% in the 2nd quarter. Harfst & Associates Inc. now owns 984 shares of the electric vehicle producer’s stock worth $355,000 after buying an additional 46 shares during the last quarter. Rikoon Group LLC boosted its stake in Tesla by 7.8% in the 2nd quarter. Rikoon Group LLC now owns 691 shares of the electric vehicle producer’s stock worth $249,000 after purchasing an additional 50 shares in the last quarter. Linscomb & Williams Inc. boosted its stake in Tesla by 1.4% in the 2nd quarter. Linscomb & Williams Inc. now owns 6,630 shares of the electric vehicle producer’s stock worth $2,397,000 after purchasing an additional 90 shares in the last quarter. Advisory Services Network LLC boosted its stake in Tesla by 21.6% in the 2nd quarter. Advisory Services Network LLC now owns 534 shares of the electric vehicle producer’s stock worth $193,000 after purchasing an additional 95 shares in the last quarter. Finally, Nordea Investment Management AB boosted its stake in Tesla by 2.3% in the 2nd quarter. Nordea Investment Management AB now owns 4,718 shares of the electric vehicle producer’s stock worth $1,706,000 after purchasing an additional 106 shares in the last quarter. 57.13% of the stock is currently owned by hedge funds and other institutional investors.

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About Tesla

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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