Tesla (NASDAQ:TSLA) Stock Price Down 3.5% After Analyst Downgrade

Tesla, Inc. (NASDAQ:TSLA) shares traded down 3.5% on Thursday after Wells Fargo & Company lowered their price target on the stock from $130.00 to $125.00. Wells Fargo & Company currently has an underweight rating on the stock. Tesla traded as low as $414.62 and last traded at $416.56. 77,209,762 shares changed hands during trading, an increase of 24% from the average session volume of 62,511,047 shares. The stock had previously closed at $431.46.

TSLA has been the topic of several other research reports. UBS Group reissued a “sell” rating and set a $307.00 price objective (up previously from $247.00) on shares of Tesla in a report on Wednesday, January 14th. William Blair reissued a “market perform” rating on shares of Tesla in a research note on Friday, January 2nd. Industrial Alliance Securities set a $300.00 price objective on shares of Tesla in a report on Monday, October 13th. Roth Mkm set a $505.00 price target on shares of Tesla and gave the company a “buy” rating in a research note on Thursday, October 23rd. Finally, Benchmark restated a “buy” rating on shares of Tesla in a report on Thursday, October 23rd. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and eight have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $410.86.

Insider Activity at Tesla

In related news, Director James R. Murdoch sold 60,000 shares of the business’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $445.40, for a total value of $26,724,000.00. Following the transaction, the director directly owned 577,031 shares of the company’s stock, valued at approximately $257,009,607.40. The trade was a 9.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Vaibhav Taneja sold 2,637 shares of Tesla stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the completion of the sale, the chief financial officer directly owned 13,757 shares in the company, valued at $6,107,145.01. This trade represents a 16.09% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 119,457 shares of company stock valued at $53,501,145. 19.90% of the stock is owned by insiders.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q4 beat on EPS and revenue with energy storage accelerating — Tesla topped consensus for the quarter and its energy storage business grew strongly, which helped offset weakness in vehicle sales. Read More.
• Positive Sentiment: AI/robotics roadmap and xAI tie‑ups support a new growth narrative — Management pushed the “physical AI” story (robotaxis, Optimus robots, custom chips) and revealed a multi‑billion dollar investment/partnership with Elon Musk’s xAI that signals deep AI integration. Read More.
• Neutral Sentiment: Energy sales to xAI and other one‑offs — Tesla disclosed material Megapack sales and related items that helped results but create questions about recurring demand versus one‑time transactions. Read More.
• Neutral Sentiment: Analyst reaction is split — Several firms raised targets and reiterated buys (TD Cowen, Mizuho among them), while others cut targets or kept sell/underweight views, leaving consensus and sentiment fragmented. Read More.
• Negative Sentiment: First full‑year revenue decline and falling vehicle deliveries — 2025 marked Tesla’s first annual revenue drop and weaker deliveries, renewing concerns that the core auto business is under pressure. Read More.
• Negative Sentiment: Huge capex plan raises cash‑burn and execution risk — Management guided to >$20B of capex for 2026 to retool plants for robots, batteries and Cybercab, a level that worries investors about near‑term free cash flow and execution. Read More.
• Negative Sentiment: Pivot risks and skepticism over Optimus/robotaxi timing — Ending Model S/X production to free Fremont capacity for Optimus and expanded robotaxi plans underscores the pivot, but prediction markets and some investors are skeptical about timelines and realistic revenue contribution. Read More.

Institutional Trading of Tesla

Several institutional investors and hedge funds have recently bought and sold shares of the company. Networth Advisors LLC bought a new stake in shares of Tesla during the 4th quarter worth $26,000. Davidson Capital Management Inc. grew its holdings in shares of Tesla by 79.4% in the fourth quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock worth $27,000 after purchasing an additional 27 shares during the last quarter. Turning Point Benefit Group Inc. bought a new position in shares of Tesla during the third quarter valued at about $30,000. Manning & Napier Advisors LLC purchased a new stake in Tesla in the 3rd quarter worth approximately $29,000. Finally, Prism Advisors Inc. bought a new stake in Tesla in the fourth quarter valued at $30,000. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla Price Performance

The company has a market cap of $1.39 trillion, a PE ratio of 277.71, a PEG ratio of 7.32 and a beta of 1.83. The firm’s 50-day moving average is $446.48 and its 200-day moving average is $406.64. The company has a quick ratio of 1.67, a current ratio of 2.07 and a debt-to-equity ratio of 0.07.

Tesla (NASDAQ:TSLA) last released its quarterly earnings results on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.05. Tesla had a return on equity of 6.61% and a net margin of 5.51%.The company had revenue of $24.90 billion for the quarter, compared to analyst estimates of $24.75 billion. During the same period in the previous year, the company posted $0.73 earnings per share. The firm’s revenue was down 3.1% on a year-over-year basis. On average, equities analysts anticipate that Tesla, Inc. will post 2.56 EPS for the current year.

Tesla Company Profile

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.