Tesla (NASDAQ:TSLA) Stock Price Down 3.2% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA)’s share price dropped 3.2% on Tuesday . The company traded as low as $352.96 and last traded at $356.09. 35,887,938 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 53,458,082 shares. The stock had previously closed at $367.95.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Investor enthusiasm is building ahead of the Cybercab event after Tesla teased a vehicle with “no steering wheel, no pedals.” Musk has promoted the prospect of deploying a large fleet of Cybercabs with better operating efficiency than rival robotaxi services. Tesla’s Cybercab event set for Thursday, with few details
• Positive Sentiment: The new Model Y L reportedly received a higher-than-expected EPA range rating, improving the vehicle’s consumer appeal and supporting Tesla’s broader product lineup. Tesla Stock Blasts Up as Model Y L Gets New Range Increase From the EPA
• Positive Sentiment: France has begun testing Tesla’s Full Self-Driving technology, potentially bringing the company closer to broader European regulatory approval. France starts tests on Tesla’s self-driving tech
• Neutral Sentiment: The Cybercab rollout remains a major bull-versus-bear catalyst. Some analysts see robotaxis as a significant growth opportunity, while Morgan Stanley maintains a Hold rating and a $400 target, warning that a limited initial fleet or weak execution could disappoint investors. Tesla Cybercab Momentum Balanced by Execution Risks
• Neutral Sentiment: August vehicle registrations were mixed in Europe, with sharp increases in France and Denmark offset by steep declines in Norway and Spain. China-made EV sales grew year over year, but momentum slowed considerably. Tesla’s August Europe Sales Surge in Some Markets, Slide in Others
• Negative Sentiment: Tesla faces formidable competition from Waymo and Zoox, which are already expanding commercial robotaxi operations. Safety, regulatory approval and profitability remain unresolved across the industry. Tesla keeps hyping robotaxis as its future
• Negative Sentiment: Fundamental concerns remain: Tesla’s latest quarterly EPS missed consensus despite revenue growth, while vehicle growth and margins have faced pressure. Its elevated valuation leaves little room for a disappointing Cybercab presentation.
• Negative Sentiment: Reports that Tesla stopped taking Solar Roof orders and has not disclosed solar deployments for several quarters raise questions about progress in its energy businesses outside automobiles. Tesla Stopped Reporting Solar Numbers 10 Quarters Ago

Wall Street Analyst Weigh In

A number of brokerages have commented on TSLA. Piper Sandler reduced their target price on Tesla from $500.00 to $450.00 and set an “overweight” rating for the company in a report on Friday, July 24th. UBS Group set a $460.00 price target on Tesla in a research report on Thursday, July 23rd. Robert W. Baird set a $475.00 price objective on Tesla in a report on Monday, July 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $500.00 target price on shares of Tesla in a research note on Tuesday, July 28th. Finally, BMO Capital Markets initiated coverage on shares of Tesla in a research report on Monday, August 17th. They issued an “outperform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eighteen have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $401.74.

Tesla Stock Performance

The stock has a 50-day moving average of $358.71 and a 200 day moving average of $383.59. The stock has a market cap of $1.51 trillion, a PE ratio of 353.85, a P/E/G ratio of 17.98 and a beta of 1.84. The company has a quick ratio of 1.55, a current ratio of 1.94 and a debt-to-equity ratio of 0.09.

Tesla (NASDAQ:TSLA) last issued its earnings results on Thursday, July 23rd. The electric vehicle producer reported $0.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.17). Tesla had a return on equity of 3.82% and a net margin of 3.67%.The company had revenue of $28.24 billion during the quarter, compared to analyst estimates of $26.42 billion. During the same period last year, the business earned $0.33 earnings per share. The firm’s revenue was up 25.5% compared to the same quarter last year. Equities analysts predict that Tesla, Inc. will post 0.88 EPS for the current fiscal year.

Insider Buying and Selling at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the completion of the sale, the chief financial officer owned 22,039 shares in the company, valued at $8,864,085.80. This trade represents a 10.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 19.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tesla

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Turning Point Benefit Group Inc. acquired a new stake in shares of Tesla during the third quarter valued at about $30,000. Texas Capital Bancshares Inc TX purchased a new position in shares of Tesla during the 3rd quarter worth approximately $31,000. Friedenthal Financial increased its holdings in Tesla by 66.7% in the 1st quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer’s stock valued at $28,000 after purchasing an additional 30 shares during the last quarter. Chapman Financial Group LLC purchased a new stake in Tesla in the second quarter valued at approximately $26,000. Finally, Harborfront Financial Group LLC acquired a new position in Tesla during the second quarter worth $34,000. Hedge funds and other institutional investors own 66.20% of the company’s stock.

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.