Tesla Inc. (NASDAQ: TSLA) board member James Murdoch has reduced his holdings in the electric vehicle giant, selling 54,776 shares on March 10, 2025 at an average price of $240.79 per share. The transaction, valued at $13.2 million, was disclosed in a recent regulatory filing.
Tesla’s stock has been under pressure, currently trading at $248.09, reflecting a 39% year-to-date decline. Despite the downturn, the company maintains a market capitalization of $797 billion, and its stock trades at a P/E ratio of 111x, signaling continued high growth expectations.
In a parallel move, Murdoch also exercised options to acquire 531,787 shares at prices between $23.85 and $24.73 per share, amounting to $12.99 million. Following these transactions, he still holds 477,011 Tesla shares, both directly and indirectly through trusts.
Trump Endorsement Boosts Tesla Visibility
Tesla recently gained attention after former U.S. President Donald Trump publicly endorsed the company, including purchasing a Tesla vehicle. The endorsement has sparked:
- Increased foot traffic at Tesla showrooms.
- A spike in online searches for Tesla vehicles.
- Speculation on potential sales growth in upcoming quarters.
Investment firm The Future Fund LLC, led by Gary Black, suggests this endorsement could positively impact Tesla’s Q2 performance. However, investor sentiment remains divided, particularly regarding CEO Elon Musk’s political engagement and its potential influence on Tesla’s fundamentals.
Meanwhile, Morgan Stanley maintains an Overweight rating on Tesla, with a bullish price target of $430, citing advancements in AI and Full Self-Driving (FSD) technology.
Analysts Split on Tesla’s Outlook
Tesla’s stock trajectory remains a topic of debate among Wall Street analysts:
- Wolfe Research reiterated a Peerperform rating, acknowledging demand concerns but recognizing Tesla’s potential in AI and FSD.
- Guggenheim Securities lowered its price target to $170, maintaining a Sell rating over concerns about first-quarter deliveries and automotive margins.
- Bloomberg reports that Musk’s private ventures, including SpaceX, Neuralink, and xAI, have seen a 45% valuation surge since the U.S. election, contrasting Tesla’s stock struggles.
With mixed analyst opinions and macroeconomic uncertainty, investors are left to assess whether Tesla remains a long-term growth play or a risky bet in 2025.