Tesla (NASDAQ:TSLA) Shares Cross Below 200-Day Moving Average – What’s Next?

Shares of Tesla, Inc. (NASDAQ:TSLA) crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $384.65 and traded as low as $338.15. Tesla shares last traded at $343.69, with a volume of 78,969,247 shares.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla registrations reportedly jumped in several European markets, including a 248% increase in Sweden, as higher fuel prices may be encouraging EV purchases. However, Chinese rivals are also gaining ground. Tesla registrations in Europe
• Neutral Sentiment: Tesla opened a Berlin engineering center and has expanded its Robotaxi service to Fort Worth, with FSD subscriptions reportedly above 1.7 million. These are potential longer-term growth drivers, but investors are questioning how much of the autonomy opportunity is already reflected in the stock’s valuation. Tesla opens Berlin engineering center Robotaxi valuation
• Negative Sentiment: The main near-term catalyst is the Democratic sweep in the midterms, including gains in Texas. Investors fear increased investigations and stricter oversight could complicate Tesla’s data-center and AI ambitions, while also adding uncertainty to a possible Tesla–SpaceX merger. Election results and Tesla’s outlook
• Negative Sentiment: Merger concerns are compounded by possible dilution: investor Gary Black warned that a reported premium in an all-stock deal could quickly disappear if the companies’ shares fall. Investor warns on merger premium
• Negative Sentiment: Investors are also weighing Tesla’s elevated valuation against pressured earnings and margins and rising spending. GLJ Research reaffirmed its “sell” rating, reinforcing concerns that expectations for Robotaxi and Optimus may be running ahead of current results. GLJ Research rating

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. Truist Financial set a $370.00 price target on shares of Tesla and gave the company a “hold” rating in a report on Thursday, July 23rd. Glj Research reiterated a “sell” rating on shares of Tesla in a report on Thursday. Mizuho increased their target price on shares of Tesla from $450.00 to $460.00 and gave the stock an “outperform” rating in a research report on Thursday, October 22nd. CLSA reissued an “underperform” rating on shares of Tesla in a research report on Monday, October 26th. Finally, Monness Crespi & Hardt initiated coverage on Tesla in a report on Monday, October 26th. They set a “buy” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, sixteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $414.51.

Tesla Stock Down 10.8%

The stock has a market cap of $1.36 trillion, a P/E ratio of 377.69, a P/E/G ratio of 23.86 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. The firm’s fifty day moving average is $372.07 and its 200 day moving average is $384.65.

Tesla (NASDAQ:TSLA) last released its quarterly earnings results on Wednesday, October 21st. The electric vehicle producer reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.46 by $0.02. Tesla had a net margin of 3.11% and a return on equity of 3.03%. The company 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 earned $0.50 earnings per share. The business’s quarterly revenue was down .2% compared to the same quarter last year. As a group, equities research analysts forecast that Tesla, Inc. will post 0.67 EPS for the current year.

Insider Activity at Tesla

In related news, CFO Vaibhav Taneja sold 2,606 shares of the business’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total transaction of $938,498.78. Following the completion of the transaction, the chief financial officer owned 25,972 shares of the company’s stock, valued at approximately $9,353,296.36. The trade was a 9.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 Trading of Tesla

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Legal & General Group Plc bought a new position in shares of Tesla during the 2nd quarter worth approximately $8,535,612,000. Bank of New York Mellon Corp acquired a new position in shares of Tesla during the 2nd quarter worth approximately $6,083,630,000. Deutsche Bank AG bought a new stake in Tesla in the 2nd quarter valued at $4,039,090,000. Canada Pension Plan Investment Board bought a new stake in Tesla in the 2nd quarter valued at $3,144,509,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Tesla during the 2nd quarter valued at $2,995,584,000. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Company Profile

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.