Tesla (NASDAQ:TSLA) Trading Down 5.9% – What’s Next?

Tesla, Inc. (NASDAQ:TSLA)’s stock price was down 5.9% during mid-day trading on Thursday . The stock traded as low as $404.71 and last traded at $400.2150. 17,690,254 shares changed hands during trading, a decline of 70% from the average daily volume of 58,268,266 shares. The stock had previously closed at $425.30.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported Q2 deliveries of 480,126 vehicles, far above estimates, signaling stronger-than-expected demand and easing worries about an extended sales slowdown. Tesla posts stronger-than-expected Q2 deliveries as Europe sales improve
• Positive Sentiment: China-made EV sales rose 24.4% in June, extending Tesla’s recovery in one of its most important markets and reinforcing the improving global demand picture. Tesla’s China-made EV sales rise 24.4% year on year in June
• Positive Sentiment: Management’s new FSD rollout for older Hardware 3 vehicles is supporting Tesla’s autonomy narrative, giving bulls fresh evidence that the company is still making progress on one of its key long-term growth drivers. Tesla Stock Surges 15% as FSD Update Backs Its Autonomy Thesis
• Neutral Sentiment: Analysts at Deutsche Bank and TD Cowen reiterated Buy ratings, while other firms kept a Hold stance, suggesting sentiment is improving but valuation remains a major debate. Tesla: Strong Q2 Deliveries Support Core Franchise but Valuation Keeps Risk/Reward Neutral, Warrants Hold
• Negative Sentiment: Michael Burry disclosed a short position against Tesla, adding a high-profile bearish overhang even as the stock benefits from strong delivery data. Big Short Investor Michael Burry Reveals Tesla, Nvidia Shorts, Says Chip Boom Is ‘Beginning of the End’
• Negative Sentiment: Despite the delivery beat, shares have faced pressure from ongoing valuation concerns, competition, and mixed investor reaction to the broader EV outlook. Tesla Stock Falls Despite Beating Q2 Deliveries; China Sales Rise for Eight Straight Months

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. The Goldman Sachs Group began coverage on Tesla in a research note on Friday, June 5th. They set a “buy” rating on the stock. Zacks Research raised shares of Tesla from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. China Renaissance reduced their price objective on shares of Tesla from $382.00 to $372.00 and set a “hold” rating for the company in a research note on Monday, April 27th. Canaccord Genuity Group upped their target price on shares of Tesla from $420.00 to $450.00 and gave the stock a “buy” rating in a report on Thursday, April 23rd. Finally, UBS Group restated a “neutral” rating on shares of Tesla in a research note on Tuesday, June 23rd. Twenty-one research analysts have rated the stock with a Buy rating, twenty have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $403.92.

Tesla Price Performance

The stock has a market capitalization of $1.47 trillion, a PE ratio of 359.14, a P/E/G ratio of 16.72 and a beta of 1.80. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62. The firm’s 50 day simple moving average is $407.13 and its 200 day simple moving average is $412.38.

Tesla (NASDAQ:TSLA) last announced its quarterly earnings data on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.39 by $0.02. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The company had revenue of $22.39 billion during the quarter, compared to analysts’ expectations of $22.96 billion. During the same quarter in the prior year, the company earned $0.27 EPS. The firm’s revenue was up 15.8% on a year-over-year basis. As a group, equities analysts forecast that Tesla, Inc. will post 1.2 EPS for the current fiscal year.

Insider Activity

In other news, Director Kathleen Wilson-Thompson sold 26,409 shares of Tesla stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the transaction, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. The trade was a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at approximately $8,864,085.80. This trade represents a 10.57% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 32,015 shares of company stock valued at $12,383,640. Company insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CX Institutional increased its position in shares of Tesla by 10.5% in the second quarter. CX Institutional now owns 79,450 shares of the electric vehicle producer’s stock valued at $33,417,000 after acquiring an additional 7,521 shares during the period. First County Bank CT increased its position in Tesla by 3.7% during the 2nd quarter. First County Bank CT now owns 1,872 shares of the electric vehicle producer’s stock valued at $787,000 after purchasing an additional 66 shares during the period. Adelphi Trust Co increased its position in Tesla by 8.6% during the 2nd quarter. Adelphi Trust Co now owns 1,769 shares of the electric vehicle producer’s stock valued at $744,000 after purchasing an additional 140 shares during the period. Global Wealth Strategies & Associates raised its holdings in Tesla by 1.6% in the 2nd quarter. Global Wealth Strategies & Associates now owns 2,130 shares of the electric vehicle producer’s stock worth $896,000 after purchasing an additional 33 shares in the last quarter. Finally, VectorGlobal IAG Inc. purchased a new stake in shares of Tesla in the 1st quarter worth about $287,000. 66.20% of the stock is currently owned by institutional investors.

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.