Tesla (NASDAQ:TSLA) Trading Down 1.8% – Should You Sell?

Shares of Tesla, Inc. (NASDAQ:TSLA) traded down 1.8% during trading on Wednesday . The stock traded as low as $434.22 and last traded at $439.20. 56,886,768 shares were traded during mid-day trading, a decline of 14% from the average session volume of 66,040,688 shares. The stock had previously closed at $447.20.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla entered mediation with the U.S. EEOC over a racial‑harassment lawsuit, which could remove a major legal overhang if settled. Tesla agrees to mediation that could resolve US agency’s racism lawsuit
• Positive Sentiment: Safety recognition: Tesla won two Euro NCAP Best‑in‑Class awards (e.g., Model 3 safer ratings), which supports brand value and could aid sales/insurance positioning in Europe. Tesla Wins Twice at the Euro NCAP Best in Class Awards
• Positive Sentiment: Product & regional tailwinds: Tesla launched a 7‑seater Model Y in the U.S. and reported improved China sales, which can help revenue mix amid delivery softness. Tesla Releases 7-Seater Model Y In US As Improved China Sales Provide Boost
• Neutral Sentiment: Strategic expansion: Tesla set up service subsidiaries in Estonia and Latvia — builds service footprint in Europe but is an incremental/long‑term move. Will Tesla’s Baltic Push Revive Its Momentum in Europe?
• Neutral Sentiment: Earnings risk: analysts warn Tesla has little room for error heading into Q4 results — this raises volatility but is outcome‑dependent. Tesla’s Earnings Loom With Almost No Room for Error
• Negative Sentiment: Major monetization change: Elon Musk announced Tesla will stop one‑time FSD purchases after Feb. 14 and move to subscription‑only ($99/mo). Investors reacted badly because it reduces immediate upfront revenue (one‑time $8k buys), raises near‑term cash/earnings uncertainty, and occurs as FSD take‑rates are low — combined with regulatory scrutiny it heightens execution risk. The $1 trillion reason Elon Musk ended Tesla FSD purchases
• Negative Sentiment: Demand softness in new markets: Tesla’s India rollout is off to a slow start — roughly 100 of the first 300 Model Ys need discounts to clear — signaling adoption/price sensitivity in a key growth market. Tesla (TSLA) Sees a Slow Start in India, Offers Discounts to Move Excess Inventory
• Negative Sentiment: Product & competitive pressures: Cybertruck sales and overall deliveries have disappointed; analysts question Tesla’s stretched valuation amid intensifying AI/robotaxi competition (Nvidia, Waymo, legacy automakers). That elevates downside risk if growth or AI execution lags. Tesla to offer self-driving software only on monthly basis from Feb 14, Musk says

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Barclays reiterated a “neutral” rating and set a $350.00 target price on shares of Tesla in a report on Monday, December 1st. TD Cowen raised their target price on shares of Tesla from $374.00 to $509.00 and gave the stock a “buy” rating in a research report on Thursday, October 9th. Industrial Alliance Securities set a $300.00 price target on Tesla in a report on Monday, October 13th. The Goldman Sachs Group raised their price objective on Tesla from $400.00 to $420.00 in a report on Friday, January 2nd. Finally, Wells Fargo & Company reiterated an “underweight” rating and issued a $130.00 target price (up from $120.00) on shares of Tesla in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, fourteen have assigned a Hold rating and nine have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $410.20.

Tesla Stock Performance

The stock’s 50-day moving average is $443.95 and its 200-day moving average is $397.34. The company has a current ratio of 2.07, a quick ratio of 1.67 and a debt-to-equity ratio of 0.07. The stock has a market cap of $1.46 trillion, a price-to-earnings ratio of 292.80, a P/E/G ratio of 7.46 and a beta of 1.83.

Tesla (NASDAQ:TSLA) last released its quarterly earnings data on Thursday, October 23rd. The electric vehicle producer reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.02. Tesla had a net margin of 5.51% and a return on equity of 6.61%. The company had revenue of $28.10 billion during the quarter, compared to analyst estimates of $24.98 billion. During the same quarter in the prior year, the business earned $0.72 earnings per share. The business’s quarterly revenue was up 11.6% compared to the same quarter last year. On average, analysts expect that Tesla, Inc. will post 2.56 EPS for the current year.

Insider Activity

In other news, Director James R. Murdoch sold 60,000 shares of the firm’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the completion of the sale, the director directly owned 577,031 shares in the company, valued at $257,009,607.40. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Vaibhav Taneja sold 2,637 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $443.93, for a total value of $1,170,643.41. Following the completion of the transaction, the chief financial officer owned 13,757 shares in the company, valued at approximately $6,107,145.01. This trade represents a 16.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 119,457 shares of company stock worth $53,501,145 over the last 90 days. Company insiders own 19.90% of the company’s stock.

Hedge Funds Weigh In On Tesla

A number of institutional investors have recently made changes to their positions in TSLA. Narwhal Capital Management raised its holdings in Tesla by 32.8% during the 3rd quarter. Narwhal Capital Management now owns 9,516 shares of the electric vehicle producer’s stock worth $4,232,000 after purchasing an additional 2,350 shares during the last quarter. Norges Bank acquired a new stake in shares of Tesla during the second quarter worth $11,839,824,000. Police & Firemen s Retirement System of New Jersey lifted its holdings in Tesla by 5.6% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 427,150 shares of the electric vehicle producer’s stock valued at $135,688,000 after buying an additional 22,607 shares during the period. AustralianSuper Pty Ltd boosted its position in Tesla by 1,823.0% during the second quarter. AustralianSuper Pty Ltd now owns 68,325 shares of the electric vehicle producer’s stock valued at $21,704,000 after acquiring an additional 64,772 shares during the last quarter. Finally, Breakthru Advisory Services LLC acquired a new stake in Tesla during the 3rd quarter worth about $835,000. 66.20% of the stock is owned by institutional investors and hedge funds.

About Tesla

Tesla, Inc (NASDAQ: TSLA) is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company’s stated mission is to accelerate the world’s transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.

Tesla’s automotive business includes a lineup of battery‑electric vehicles and related services.