Investor's Corner
Tesla manufacturing prowess, stock split plans indicate ‘massive position of strength:’ Wedbush
Tesla’s (NASDAQ: TSLA) second stock split in as many years and its manufacturing capacity, which has already grown considerably with new factory openings in 2022, indicate a “massive position of strength” for the electric automaker, according to Wedbush analyst Dan Ives. Ives, who has held a bullish position on Tesla for years, sees parallels in Tesla’s move for another stock split with Amazon, Google, and Apple’s strategies.
“Tesla right now is in a massive position of strength in terms of where they’re heading from a manufacturing perspective, in terms of Berlin, as well as Austin and overall demand,” Ives said to Yahoo! Finance in an interview. “They have that high-class problem of a four-digit stock. And I think it’s something where you could always have the debate, but a stock split is a smart strategic move for Tesla, just like it was for Amazon, just like it was for Google, as well as for Apple.”
Tesla’s last stock split, which took place in August 2020, gave young and retail investors the opportunity to get in on the stock as it rose to astronomical levels. Shares were trading at three times the value compared to the beginning of the year, and when Tesla announced the split on August 11, shares were trading at around $1,450.00. Shares exploded to $2,000 when the stock split at the end of August 2020. The price reset at around $460 per share.
Tesla stock has bumped in value considerably over the past month, up over 25 percent since February 28. The automaker’s opening of the Gigafactory Berlin facility in Germany earlier this month was a bullish move as Tesla has been waiting for approval on the factory for about six months. Additionally, Tesla will open its new Gigafactory Texas plant in Austin soon, as it is still awaiting approval on a final version of the Model Y crossover, according to EPA documents.
The stock split is Ives’ biggest focus, especially as Tesla just announced it would let shareholders vote on the proposal during the annual meeting this Summer. After shares dipped earlier this month due to “inflation pressure” that surged vehicle prices upward, the stock has performed a major turnaround and worked its way toward a potential split.
“You don’t buy it because of a stock split,” Ives added to his commentary during the interview. “You buy it because fundamentally where you think it’s gonna go, but the stock split is gonna be something that is a catalyst.” Ives went on to mention the stock split has been a major discussion amongst investors for several months. “I think it was smart to get out there,” Ives said.
The frequency of Tesla stock splits is a major indicator of strength in Ives’ eyes. A “company that’s gonna do their second split in two years is not doing it because they’re in a position of weakness. I think it shows a position of strength,” Ives said.
Last week, Ives told Teslarati “Musk is flexing his muscles with the Berlin and Austin build-outs, and within the EV landscape, at this point, it’s Tesla’s world and everyone else is paying rent.”
Ives holds a $1,400 price target on Tesla stock and is ranked #86 out of 7,918 analysts on TipRanks.
Disclosure: Joey Klender is a TSLA Shareholder.
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Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Tesla Full Self-Driving lands in a new country, its 7th
Tesla CEO Elon Musk teases insane capabilities of next major FSD update
