Tesla (NASDAQ:TSLA) Shares Down 10.8% – Should You Sell?

Tesla, Inc. (NASDAQ:TSLA)’s stock price dropped 10.8% during trading on Thursday. The company traded as low as $338.15 and last traded at $343.69. Approximately 78,257,730 shares traded hands during mid-day trading, an increase of 56% from the average session volume of 50,233,453 shares. The stock had previously closed at $385.19.

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla registrations rose sharply in several European markets, including a reported 248% increase in Sweden, as higher fuel prices may be supporting EV demand. The reports also note that BYD and other Chinese competitors are gaining ground. Tesla European registrations
• Positive Sentiment: Tesla has expanded its Robotaxi service to Fort Worth, while FSD subscriptions reportedly exceed 1.7 million—potential growth drivers, although autonomy-related profits remain limited relative to the stock’s valuation. Robotaxi and FSD update
• Neutral Sentiment: The opening of Tesla’s Berlin Engineering Center adds engineering capacity in Europe, but the report does not indicate an immediate financial contribution. Berlin Engineering Center
• Negative Sentiment: The main near-term drag is the Democratic sweep of Congress and election results in Texas. Investors fear increased scrutiny and tougher rules for Musk-related AI and data-center projects, potentially complicating Tesla’s expansion plans. Election fallout for Tesla and SpaceX
• Negative Sentiment: Political uncertainty has also clouded prospects for a possible Tesla–SpaceX merger. Investor Gary Black warned that an all-stock deal’s proposed premium could evaporate, raising concerns about dilution and deal value. Merger and dilution concerns
• Negative Sentiment: Valuation remains vulnerable: commentary highlights pressure on earnings and margins alongside heavy planned spending, while Tesla trades at a steep multiple to current profits. GLJ Research also reaffirmed its “sell” rating. GLJ Research rating
• Negative Sentiment: Additional regulatory overhangs include a South Korean consumer group’s allegation that Tesla misled customers about automated-driving technology, and a Vietnam probe deadline that could affect production plans. Regulatory and business risks

Wall Street Analysts Forecast Growth

TSLA has been the topic of a number of analyst reports. Mizuho raised their price target on Tesla from $450.00 to $460.00 and gave the company an “outperform” rating in a research note on Thursday, October 22nd. UBS Group raised Tesla from a “neutral” rating to a “buy” rating in a research report on Monday, October 26th. Wells Fargo & Company reaffirmed a “buy” rating on shares of Tesla in a research report on Thursday, October 1st. Barclays upgraded Tesla from an “outperform” rating to an “overweight” rating and increased their price objective for the company from $370.00 to $450.00 in a report on Monday, October 26th. Finally, Canaccord Genuity Group set a $442.00 target price on Tesla and gave the stock a “buy” rating in a research report on Thursday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $414.51.

Tesla Stock Down 10.8%

The firm has a 50 day simple moving average of $372.12 and a two-hundred day simple moving average of $385.12. The company has a market capitalization of $1.36 trillion, a PE ratio of 377.69, a P/E/G ratio of 24.68 and a beta of 1.74. The company has a current ratio of 1.74, a quick ratio of 1.39 and a debt-to-equity ratio of 0.09.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings results on Wednesday, October 21st. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.46 by $0.02. Tesla had a net margin of 3.11% and a return on equity of 3.03%. The firm had revenue of $28.05 billion during the quarter, compared to analysts’ expectations of $28.06 billion. During the same period in the prior year, the company posted $0.50 earnings per share. The firm’s revenue for the quarter was down .2% on a year-over-year basis. Research analysts expect that Tesla, Inc. will post 0.67 EPS for the current year.

Insider Activity

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total transaction of $938,498.78. Following the sale, the chief financial officer directly owned 25,972 shares in the company, valued at approximately $9,353,296.36. The trade was a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 20.00% of the company’s stock.

Institutional Investors Weigh In On Tesla

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp boosted its holdings in Tesla by 2.4% in the second quarter. State Street Corp now owns 117,456,756 shares of the electric vehicle producer’s stock valued at $49,402,312,000 after acquiring an additional 2,761,298 shares during the last quarter. Legal & General Group Plc acquired a new stake in Tesla during the second quarter worth about $8,535,612,000. Amundi increased its stake in Tesla by 14.0% during the first quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer’s stock worth $8,243,513,000 after acquiring an additional 2,727,141 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Tesla in the 2nd quarter worth about $6,083,630,000. Finally, Bamco Inc. NY raised its holdings in shares of Tesla by 5.0% in the 2nd quarter. Bamco Inc. NY now owns 12,524,752 shares of the electric vehicle producer’s stock worth $5,267,911,000 after purchasing an additional 591,243 shares during the period. Hedge funds and other institutional investors own 66.20% of the company’s stock.

About Tesla

Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.