Tesla (NASDAQ:TSLA) Earns Outperform Rating from Royal Bank Of Canada

Posted by Brenda Bartman on Oct 22nd, 2026

Tesla (NASDAQ:TSLA – Get Free Report)‘s stock had its “outperform” rating restated by equities research analysts at Royal Bank Of Canada in a research report issued on Thursday, Benzinga reports. They presently have a $480.00 price objective on the electric vehicle producer’s stock. Royal Bank Of Canada‘s price target suggests a potential upside of 28.14% from the stock’s previous close.

Other research analysts have also recently issued research reports about the company. Citizens Jmp started coverage on Tesla in a research note on Thursday, July 9th. They set a “market perform” rating for the company. Barclays upgraded shares of Tesla from a “negative” rating to an “outperform” rating in a research report on Monday. Jefferies Financial Group reissued a “hold” rating and issued a $400.00 price target (up from $350.00) on shares of Tesla in a report on Monday, October 12th. Yorkville Ives assumed coverage on shares of Tesla in a research report on Wednesday, October 7th. They set an “outperform” rating and a $500.00 price objective for the company. Finally, Guggenheim began coverage on shares of Tesla in a research note on Monday, June 29th. They issued a “neutral” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, twenty have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $408.61.

Read Our Latest Report on Tesla

Tesla Price Performance

TSLA traded down $11.89 on Thursday, reaching $374.58. The company had a trading volume of 51,240,897 shares, compared to its average volume of 50,606,566. The company has a market capitalization of $1.48 trillion, a P/E ratio of 346.84, a PEG ratio of 23.73 and a beta of 1.92. The company has a current ratio of 1.94, a quick ratio of 1.55 and a debt-to-equity ratio of 0.09. The company has a fifty day moving average of $362.72 and a 200-day moving average of $377.16. Tesla has a one year low of $297.38 and a one year high of $498.83.

Tesla (NASDAQ:TSLA – Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The electric vehicle producer reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. Tesla had a net margin of 3.67% and a return on equity of 3.82%. The company had revenue of $28.05 billion for the quarter, compared to the consensus estimate of $28.06 billion. Tesla’s revenue was down .2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.50 EPS. As a group, equities research analysts anticipate that Tesla will post 0.71 earnings per share for the current year.

Insider Buying and Selling

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of Tesla stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total transaction of $938,498.78. Following the transaction, the chief financial officer directly owned 25,972 shares in the company, valued at approximately $9,353,296.36. The trade was a 9.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 19.90% of the company’s stock.

Institutional Trading of Tesla

Hedge funds have recently modified their holdings of the business. State Street Corp grew its stake in Tesla by 2.4% during the 2nd quarter. State Street Corp now owns 117,456,756 shares of the electric vehicle producer’s stock valued at $49,402,312,000 after acquiring an additional 2,761,298 shares in the last quarter. Amundi increased its stake in Tesla by 14.0% in the 1st quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer’s stock valued at $8,243,513,000 after buying an additional 2,727,141 shares during the period. Legal & General Group Plc acquired a new position in Tesla in the 2nd quarter valued at approximately $8,535,612,000. Bank of New York Mellon Corp purchased a new stake in Tesla in the 2nd quarter worth approximately $6,083,630,000. Finally, Bamco Inc. NY lifted its position in Tesla by 5.0% in the 2nd quarter. Bamco Inc. NY now owns 12,524,752 shares of the electric vehicle producer’s stock worth $5,267,911,000 after buying an additional 591,243 shares in the last quarter. Hedge funds and other institutional investors own 66.20% of the company’s stock.

Key Tesla News

Here are the key news stories impacting Tesla this week:

Positive Sentiment: Q3 earnings and cash flow exceeded expectations. Tesla reported adjusted EPS of $0.48 versus the $0.45 consensus estimate and generated approximately $1.5 billion in free cash flow, a significant improvement over expectations for a cash outflow. Musk’s Tesla revenue beats estimates as deliveries rebound, energy storage grows
Positive Sentiment: Full Self-Driving adoption and services are expanding. More than 75% of new North American deliveries included paid FSD, while subscriptions reportedly rose 67% year over year. Services revenue also grew sharply, supporting Tesla’s long-term software and autonomy narrative. Tesla’s FSD Subscriptions Surge 67% even as Car Deliveries Decline
Positive Sentiment: Analysts raised several price targets. Mizuho lifted its target to $460 with an outperform rating, while JPMorgan raised its target to $430 but maintained a neutral view. Bulls continue to cite FSD, robotaxis, Optimus and energy storage as potential growth drivers.
Neutral Sentiment: SpaceX merger speculation remains a major valuation catalyst. Independent committees at Tesla and SpaceX are evaluating a possible combination, which could provide access to AI, chips, robotics and space infrastructure. However, valuation, regulatory approval, China operations, shareholder approval and potential dilution make the outcome highly uncertain. Musk’s public endorsement of SpaceX-Tesla deal may throw a wrench in talks
Negative Sentiment: Core financial results remained under pressure. Revenue was essentially flat year over year at about $28.05 billion, vehicle revenue declined, and operating income fell 56%. Tesla’s valuation—near 350 times earnings—leaves little room for disappointing auto growth or margin compression.
Negative Sentiment: The 2026 capital-spending forecast was cut to $20 billion from roughly $25 billion. Investors interpreted the reduction as a possible sign that Tesla is slowing its AI, robotics and autonomous-driving buildout, while Musk also indicated that Optimus will take longer to scale. Tesla drops as spending pullback clouds AI, robotics ambitions

Tesla Company Profile

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Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.