Rakuten Investment Management Invests $5.2M in Tesla Shares

Rakuten Investment Management Inc. has acquired a new stake in Tesla, Inc. (NASDAQ: TSLA) during the third quarter of 2023, as disclosed in its recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 11,621 shares of the electric vehicle manufacturer, valued at approximately $5.168 million. This move reflects a broader trend among institutional investors regarding their positions in Tesla.

Several other investment firms have also adjusted their holdings in Tesla during the same period. For instance, BankPlus Wealth Management LLC increased its stake by 26.4%, now owning 882 shares worth about $392,000 after acquiring an additional 184 shares. Similarly, Cornerstone Wealth Group LLC raised its position by 3.1%, resulting in a total of 10,816 shares valued at $4.81 million after purchasing 323 shares.

Other notable changes include Brandywine Oak Private Wealth LLC, which boosted its stake by 1.4% to own 4,028 shares worth approximately $1.791 million. Additionally, Next Level Wealth Planning LLC increased its holdings by 5.3%, now owning 1,477 shares valued at $657,000. Finally, Samalin Investment Counsel LLC raised its stake by 0.4%, bringing its total to 5,916 shares worth around $2.631 million. Collectively, these institutional investors hold 66.20% of Tesla’s stock.

Insider Trading Activity

Recent insider trading activities have also drawn attention. Kimbal Musk, a director of Tesla, sold 56,820 shares on December 9, 2023, at an average price of $450.66, resulting in a total transaction value of $25.607 million. Following this sale, he continues to hold 1,391,615 shares, valued at approximately $627.145 million, reflecting a 3.92% decrease in his ownership.

In another transaction, James R. Murdoch, also a director, sold 60,000 shares on January 2, 2024, for an average price of $445.40, amounting to $26.724 million. Post-sale, he owns 577,031 shares, with a total value of around $257.010 million, representing a 9.42% decline in his ownership. Over the last quarter, insiders have collectively sold 119,457 shares worth $53.501 million, with insiders retaining 19.90% of the stock.

Tesla’s Market Performance

As of the latest trading session, shares of Tesla opened at $449.36. The company maintains a debt-to-equity ratio of 0.07, a quick ratio of 1.67, and a current ratio of 2.07. With a market capitalization of $1.49 trillion, Tesla has a price-to-earnings ratio of 299.57 and a price-to-earnings-growth ratio of 7.36. The stock has shown volatility, with a fifty-two week low of $214.25 and a high of $498.83.

Tesla last reported its quarterly earnings on October 23, 2023, revealing earnings per share (EPS) of $0.50, surpassing analysts’ expectations of $0.48. The company achieved a net margin of 5.51% and a return on equity of 6.61%, with quarterly revenue reported at $28.10 billion, exceeding the consensus estimate of $24.98 billion. Compared to the same quarter last year, revenue increased by 11.6%. Analysts project that Tesla will report an EPS of $2.56 for the current fiscal year.

About Tesla, Inc.

Founded in 2003, Tesla, Inc. (NASDAQ: TSLA) designs, manufactures, and sells electric vehicles, as well as energy generation and storage products. Under the leadership of CEO Elon Musk, Tesla has become a key player in the transition to sustainable energy, focusing on electric drivetrains, battery technology, and renewable energy solutions. The company continues to innovate within the automotive sector, offering a range of battery-electric vehicles and related services.