On April 28, Joseph Gebbia, Director at Tesla TSLA executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Gebbia bought 4,000 shares of Tesla, amounting to a total of $1,025,232.
As of Tuesday morning, Tesla shares are down by 1.3%, currently priced at $282.17.
Discovering Tesla: A Closer Look
Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and offer a robotaxi service. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network.
Tesla: Financial Performance Dissected
Revenue Growth: Tesla’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -9.23%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Insights into Profitability:
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Gross Margin: With a high gross margin of 16.31%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Tesla’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.13.
Debt Management: Tesla’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.18.
Financial Valuation:
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Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 163.36, Tesla’s stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 10.47 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 65.83 reflects market recognition of Tesla’s value, positioning it as more highly valued compared to industry peers.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
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The Impact of Insider Transactions on Investments
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Tesla’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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