Tesla (NASDAQ:TSLA) Stock Falls 3.3% – Should You Sell?

by · The Cerbat Gem

Tesla, Inc. (NASDAQ:TSLA – Get Free Report) was down 3.3% during mid-day trading on Wednesday. The company traded as low as $375.50 and last traded at $385.19. Approximately 47,407,381 shares changed hands during mid-day trading, a decline of 5% from the average session volume of 50,117,289 shares. The stock had previously closed at $398.50.

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

  • Positive Sentiment: Elon Musk said Tesla plans to wind down Cybertruck production at its Texas factory around mid-2027 to make room for more Cybercab robotaxis. Investors may see the move as reallocating capacity toward Tesla’s autonomous-driving ambitions; the truck accounted for less than 2% of third-quarter deliveries. CNBC article
  • Positive Sentiment: A new AI-accelerator roadmap was also highlighted as a catalyst for the stock, reinforcing investor interest in Tesla’s AI strategy beyond vehicle sales. TipRanks article
  • Neutral Sentiment: EV shares broadly rebounded after the sector’s post-election sell-off, offering a market-level tailwind for Tesla. 247WallSt article
  • Negative Sentiment: The production wind-down underscores Cybertruck demand and execution challenges: reports cite sharply lower sales, delays, quality issues, and multiple recalls. The Cybercab opportunity is not yet proven and depends on regulatory clearance, customer adoption, and viable economics. Reuters article

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Citigroup reissued a “neutral” rating on shares of Tesla in a research report on Wednesday, October 21st. Royal Bank Of Canada downgraded shares of Tesla from an “outperform” rating to a “sector perform” rating in a research note on Thursday, October 22nd. Tigress Financial assumed coverage on shares of Tesla in a report on Thursday, October 22nd. They set a “buy” rating on the stock. Deutsche Bank Aktiengesellschaft initiated coverage on Tesla in a research report on Monday, October 26th. They issued a “buy” rating on the stock. Finally, Canaccord Genuity Group set a $442.00 price target on Tesla and gave the stock a “buy” rating in a research report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, sixteen have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, Tesla has an average rating of “Moderate Buy” and an average price target of $414.51.

Read Our Latest Report on TSLA

Tesla Stock Up 4.2%

The firm has a market cap of $1.42 trillion, a PE ratio of 393.65, a PEG ratio of 23.86 and a beta of 1.74. The business’s 50 day moving average price is $372.14 and its 200 day moving average price is $384.35. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.74 and a quick ratio of 1.39.

Tesla (NASDAQ:TSLA – Get Free Report) last announced its 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 company had revenue of $28.05 billion for the quarter, compared to analysts’ expectations of $28.06 billion. During the same quarter in the previous year, the company posted $0.50 EPS. The firm’s quarterly revenue was down .2% on a year-over-year basis. On average, equities research analysts expect that Tesla, Inc. will post 0.67 earnings per share for the current year.

Insider Transactions at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 2,606 shares of Tesla 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 sale, the chief financial officer directly owned 25,972 shares of the company’s stock, valued at $9,353,296.36. The trade was a 9.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 20.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in TSLA. Crystal Cove Asset Management LLC increased its stake in Tesla by 35.3% during the 3rd quarter. Crystal Cove Asset Management LLC now owns 1,372 shares of the electric vehicle producer’s stock worth $487,000 after buying an additional 358 shares in the last quarter. Moors & Cabot Inc. lifted its position in Tesla by 7.5% in the third quarter. Moors & Cabot Inc. now owns 49,485 shares of the electric vehicle producer’s stock valued at $17,558,000 after buying an additional 3,455 shares during the last quarter. ICICI Prudential Asset Management Co Ltd lifted its holdings in shares of Tesla by 3.8% in the 3rd quarter. ICICI Prudential Asset Management Co Ltd now owns 31,054 shares of the electric vehicle producer’s stock worth $11,018,000 after acquiring an additional 1,130 shares during the last quarter. Citizens & Northern Corp purchased a new stake in shares of Tesla in the 3rd quarter valued at $1,278,000. Finally, Fisher Asset Management LLC grew its stake in Tesla by 6.1% during the 3rd quarter. Fisher Asset Management LLC now owns 37,587 shares of the electric vehicle producer’s stock worth $13,336,000 after purchasing an additional 2,163 shares in the last quarter. 66.20% of the stock is owned by hedge funds and other institutional investors.

About Tesla

(Get Free Report)

Tesla, Inc designs, develops, manufactures and sells electric vehicles and energy products. Its vehicle lineup includes the Model S, Model 3, Model X, Model Y and Cybertruck, along with related software and services.

The company also provides energy generation and storage products, including solar systems, Powerwall home batteries and Megapack utility-scale storage. Its services include vehicle maintenance, charging through the Supercharger network and software features for its vehicles.

Founded in 2003 and headquartered in Austin, Texas, Tesla serves customers in markets around the world.

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