Tesla (NASDAQ:TSLA) Shares Down 5.8% – Should You Sell?

Tesla, Inc. (NASDAQ:TSLA) was down 5.8% during mid-day trading on Tuesday . The company traded as low as $379.06 and last traded at $381.61. 49,651,461 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 59,327,305 shares. The stock had previously closed at $405.05.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla’s Optimus humanoid robot could become a much bigger customer for memory chips than Tesla’s cars, reinforcing the market’s view that Optimus may evolve into a major AI and robotics growth driver. Article Title
• Positive Sentiment: Tesla announced a 16-gigawatt U.S. virtual power plant partnership with Sunrun and Renew Home, plus a separate multi-year European battery-storage deal with NatPower, highlighting growing energy-storage revenue potential. Article Title
• Positive Sentiment: The Sunrun-Tesla-Renew Home agreement is being framed as a major catalyst for powering AI data centers, which could strengthen investor confidence in Tesla’s energy platform and broader AI story. Article Title
• Neutral Sentiment: Investors are still watching Q2 delivery figures closely, but some commentary suggests Tesla’s energy revenue and software/autonomy initiatives may matter more than near-term vehicle shipments for the stock’s longer-term valuation. Article Title
• Negative Sentiment: The NTSB opened a probe into a fatal Texas crash involving a Tesla Model 3, and the victim’s family also filed a wrongful-death lawsuit, adding fresh legal and regulatory risk around Tesla’s driver-assistance systems. Article Title
• Negative Sentiment: Analysts and market commentators noted continued underperformance versus the Nasdaq and described Tesla as being weighed down by broader tech weakness, margin concerns, and negative sentiment around safety headlines. Article Title

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on TSLA. Canaccord Genuity Group boosted 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. Bank of America initiated coverage on shares of Tesla in a report on Wednesday, March 4th. They set a “buy” rating and a $460.00 price target on the stock. Truist Financial decreased their price objective on Tesla from $438.00 to $400.00 and set a “hold” rating for the company in a report on Thursday, April 2nd. The Goldman Sachs Group began coverage on Tesla in a research report on Friday, June 5th. They set a “buy” rating for the company. Finally, Citigroup reaffirmed a “neutral” rating on shares of Tesla in a report on Tuesday, June 16th. Twenty-one analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat, Tesla has a consensus rating of “Hold” and an average price target of $405.06.

Tesla Stock Performance

The stock’s 50 day moving average price is $405.64 and its 200 day moving average price is $413.97. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.04. The company has a market capitalization of $1.40 trillion, a P/E ratio of 341.85, a price-to-earnings-growth ratio of 15.25 and a beta of 1.80.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings data on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02. The company had revenue of $22.39 billion during the quarter, compared to analysts’ expectations of $22.96 billion. Tesla had a net margin of 3.95% and a return on equity of 4.89%. Tesla’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.27 earnings per share. As a group, equities analysts expect that Tesla, Inc. will post 1.19 EPS for the current year.

Insider Transactions at Tesla

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 completion of the transaction, the director directly owned 48,399 shares of the company’s stock, valued at approximately $18,300,145.89. This trade represents a 35.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 transaction, the chief financial officer directly owned 22,039 shares in the company, valued at $8,864,085.80. This represents a 10.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 57,824 shares of company stock valued at $21,657,588. Company insiders own 19.90% of the company’s stock.

Hedge Funds Weigh In On Tesla

A number of institutional investors and hedge funds have recently modified their holdings of TSLA. Networth Advisors LLC bought a new stake in Tesla in the fourth quarter valued at $26,000. Davidson Capital Management Inc. boosted its position in shares of Tesla by 79.4% during the 4th 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 in the last quarter. Turning Point Benefit Group Inc. bought a new position in shares of Tesla during the 3rd quarter worth about $30,000. Prism Advisors Inc. acquired a new stake in shares of Tesla in the 4th quarter valued at about $30,000. Finally, Texas Capital Bancshares Inc TX bought a new stake in Tesla in the 3rd quarter valued at about $31,000. 66.20% of the stock is currently owned by institutional investors.

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.