Tesla (NASDAQ:TSLA) Shares Down 6.6% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA) shares were down 6.6% during trading on Friday . The company traded as low as $388.59 and last traded at $391.00. Approximately 61,794,232 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 60,308,188 shares. The stock had previously closed at $418.45.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: J.P. Morgan upgraded Tesla and said the company’s long-term story is being driven by autonomous driving and robotics, which is a meaningful endorsement from a former bear. JP Morgan upgrades Tesla to ‘neutral’, sees robotics driving long-term growth
• Positive Sentiment: Broader commentary around Tesla’s AI and robotics ambitions, including Optimus and robotaxi progress, is reinforcing the bullish case that Tesla could be valued more like an AI platform than a carmaker. J.P. Morgan Upgrades Tesla Stock (TSLA) to ‘Neutral,’ Says ‘TSLA Is at the Forefront of Physical AI’
• Positive Sentiment: Some reports point to improving vehicle sales and stronger autonomous-driving momentum, including expansion of Tesla’s robotaxi service in Austin and rising global EV sales led by Tesla. Global Electric Vehicle Sales Rose 16% in April, Led by Tesla (TSLA)
• Neutral Sentiment: SpaceX’s huge IPO and Elon Musk-related headlines are boosting attention on Musk’s broader empire, but they are not direct operating catalysts for Tesla’s core business. SpaceX targets $135 IPO price at valuation of $1.77 trillion
• Negative Sentiment: Tesla remains vulnerable to valuation concerns, with multiple pieces noting that the stock price already reflects a lot of future AI and robotics success before those profits are proven. Buy, Hold, or Sell: Is Tesla Stock a Sell Above $400?
• Negative Sentiment: There are also recurring concerns about competition, robotaxi execution, and softer short-term trading sentiment, which may limit upside even after the upgrade. More Unfortunate News for Tesla Stock Investors

Analyst Ratings Changes

TSLA has been the topic of a number of analyst reports. Benchmark reaffirmed a “buy” rating on shares of Tesla in a research note on Wednesday, February 11th. BNP Paribas Exane lowered shares of Tesla from a “hold” rating to an “underperform” rating in a report on Friday. Glj Research reaffirmed a “sell” rating on shares of Tesla in a report on Tuesday, April 21st. Erste Group Bank raised shares of Tesla from a “sell” rating to a “hold” rating in a report on Friday. Finally, HSBC initiated coverage on shares of Tesla in a report on Monday, April 27th. They set a “buy” rating for the company. Twenty-two analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Tesla has a consensus rating of “Hold” and an average target price of $404.37.

Tesla Price Performance

The company has a quick ratio of 1.62, a current ratio of 2.04 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $1.47 trillion, a PE ratio of 358.72, a PEG ratio of 15.44 and a beta of 1.80. The company has a 50-day moving average of $395.33 and a 200 day moving average of $416.06.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 EPS for the quarter, topping the consensus estimate of $0.39 by $0.02. Tesla had a return on equity of 4.89% and a net margin of 3.95%.The firm had revenue of $22.39 billion during the quarter, compared to analysts’ expectations of $22.96 billion. During the same period in the previous year, the business earned $0.27 earnings per share. The firm’s revenue for the quarter was up 15.8% on a year-over-year basis. Sell-side analysts predict that Tesla, Inc. will post 1.2 EPS for the current year.

Insider Activity at Tesla

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the business’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the sale, the director directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total value of $1,350,000.00. Following the sale, the chief financial officer owned 18,106 shares of the company’s stock, valued at $8,147,700. The trade was a 14.21% 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. Insiders have sold 55,218 shares of company stock valued at $20,609,455 over the last quarter. 19.90% of the stock is owned by company insiders.

Institutional Trading of Tesla

Large investors have recently added to or reduced their stakes in the stock. Networth Advisors LLC purchased a new stake in Tesla in the 4th quarter valued at $26,000. Chapman Financial Group LLC purchased a new stake in Tesla in the 2nd quarter valued at $26,000. Davidson Capital Management Inc. grew its position in 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 acquiring an additional 27 shares during the period. Friedenthal Financial grew its position in Tesla by 66.7% in the first quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer’s stock worth $28,000 after acquiring an additional 30 shares during the period. Finally, Prism Advisors Inc. purchased a new position in Tesla in the fourth quarter worth approximately $30,000. 66.20% of the stock is currently owned by hedge funds and other 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.