Tesla (NASDAQ:TSLA) Shares Down 5.9% – Should You Sell?

Shares of Tesla, Inc. (NASDAQ:TSLA) were down 5.9% during mid-day trading on Thursday . The company traded as low as $404.71 and last traded at $400.2150. Approximately 17,690,254 shares changed hands during mid-day 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 Roundup

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 Ratings Changes

Several analysts have weighed in on the company. Guggenheim began coverage on Tesla in a research report on Monday. They set a “neutral” rating on the stock. Cantor Fitzgerald restated an “overweight” rating on shares of Tesla in a research note on Monday, June 1st. Wedbush restated an “outperform” rating and set a $600.00 price target on shares of Tesla in a research report on Tuesday, April 21st. DZ Bank raised Tesla from a “sell” rating to a “hold” rating and set a $385.00 price target on the stock in a research note on Friday, April 24th. Finally, Mizuho decreased their price objective on Tesla from $540.00 to $480.00 and set an “outperform” rating for the company in a report on Thursday, April 23rd. Twenty-one equities research analysts have rated the stock with a Buy rating, twenty have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $403.92.

Tesla Stock Down 8.1%

The company’s fifty day moving average price is $407.13 and its 200-day moving average price is $412.38. The stock has a market capitalization of $1.47 trillion, a PE ratio of 359.14, a price-to-earnings-growth ratio of 16.72 and a beta of 1.80. The company has a quick ratio of 1.62, a current ratio of 2.04 and a debt-to-equity ratio of 0.09.

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 analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $22.96 billion. During the same period in the previous year, the firm posted $0.27 EPS. The business’s revenue for the quarter was up 15.8% compared to the same quarter last year. Analysts forecast that Tesla, Inc. will post 1.2 earnings per share for the current year.

Insider Buying and Selling at Tesla

In other news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction on 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 sale, the director directly owned 48,399 shares of the company’s stock, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their ownership of the stock. 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 firm’s stock in a transaction on 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 transaction, the chief financial officer owned 22,039 shares of the company’s stock, valued at $8,864,085.80. The trade was 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. Insiders sold 32,015 shares of company stock worth $12,383,640 over the last three months. Corporate insiders own 19.90% of the company’s stock.

Institutional Trading of Tesla

Several institutional investors have recently bought and sold shares of the company. Networth Advisors LLC bought a new stake in shares of Tesla during the fourth quarter valued at approximately $26,000. Chapman Financial Group LLC bought a new position in Tesla in the 2nd quarter valued at approximately $26,000. Davidson Capital Management Inc. boosted its stake in Tesla by 79.4% during the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock valued at $27,000 after purchasing an additional 27 shares during the last quarter. Friedenthal Financial boosted its stake in Tesla by 66.7% during 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. Finally, Prism Advisors Inc. bought a new stake in shares of Tesla in the 4th quarter worth $30,000. 66.20% of the stock is 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.