Tesla (NASDAQ:TSLA) Stock Price Down 2% – Time to Sell?
by Danessa Lincoln · The Markets DailyTesla, Inc. (NASDAQ:TSLA – Get Free Report)’s share price traded down 2% on Wednesday . The stock traded as low as $393.76 and last traded at $396.38. 42,963,455 shares were traded during mid-day trading, a decline of 28% from the average session volume of 59,586,641 shares. The stock had previously closed at $404.66.
Key Tesla News
Here are the key news stories impacting Tesla this week:
- Positive Sentiment: Goldman Sachs lifted its second-quarter delivery outlook for Tesla, suggesting vehicle deliveries could come in stronger than expected and providing a potential near-term support for the stock. Goldman Sachs Raises Tesla Delivery Forecast as Second-Quarter Performance Appears Stronger Than Expected (TSLA)
- Positive Sentiment: Analysts also said Tesla’s Full Self-Driving software is gaining traction in Europe, and some reports pointed to upbeat Q2 EV sales estimates, which help reinforce the bullish long-term case around autonomy and software revenue. Tesla stock slips below $400: why upbeat EV sales estimates are not helping
- Neutral Sentiment: Tesla’s expansion into Argentina, including charger and energy-storage collaboration efforts, is strategically positive but not yet large enough to move the stock on its own. Argentina’s YPF, Tesla to explore EV charging, energy storage collaboration
- Neutral Sentiment: Optimism around Tesla’s AI5 chip tape-out and its broader AI ambitions supports the long-term “Tesla as an AI company” story, but this is still more of a future catalyst than an immediate trading driver. Tesla’s AI5 Chip Recently Completed Tape-Out
- Negative Sentiment: Investor concerns are rising that Tesla’s robotaxi rollout is lagging competitors, with reports noting only 69 robotaxis in Texas and Waymo’s clear lead, which dampens enthusiasm for Tesla’s autonomous-driving valuation premium. Tesla Has Only 69 Robotaxis In Texas — But They Are Cheap
- Negative Sentiment: New scrutiny from U.S. senators over Tesla’s Full Self-Driving safety data and claims adds headline risk and could increase regulatory pressure on one of the company’s key growth narratives. US senators ask for review of Tesla’s ‘Full Self-Driving’ safety data
Analyst Ratings Changes
TSLA has been the subject of several recent analyst reports. Phillip Securities lowered their price objective on shares of Tesla from $220.00 to $215.00 and set a “sell” rating for the company in a research note on Wednesday, May 13th. TD Cowen reiterated a “buy” rating and set a $490.00 price target on shares of Tesla in a research report on Thursday, June 4th. Cantor Fitzgerald restated an “overweight” rating on shares of Tesla in a report on Monday, June 1st. Robert W. Baird cut their price target on shares of Tesla from $538.00 to $522.00 and set an “outperform” rating on the stock in a report on Friday, April 24th. Finally, Erste Group Bank upgraded shares of Tesla from a “sell” rating to a “hold” rating in a report on Friday, June 5th. Twenty-one equities research analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $404.37.
Get Our Latest Stock Report on Tesla
Tesla Stock Down 2.0%
The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62. The firm has a market capitalization of $1.49 trillion, a P/E ratio of 363.65, a P/E/G ratio of 16.44 and a beta of 1.80. The company’s 50-day simple moving average is $400.24 and its two-hundred day simple moving average is $415.78.
Tesla (NASDAQ:TSLA – Get Free Report) last released its quarterly earnings results 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. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The business had revenue of $22.39 billion for the quarter, compared to the consensus estimate of $22.96 billion. During the same period last year, the firm earned $0.27 earnings per share. The company’s quarterly revenue was up 15.8% on a year-over-year basis. As a group, research analysts expect that Tesla, Inc. will post 1.19 earnings per share for the current year.
Insider Activity at Tesla
In other Tesla news, CFO Vaibhav Taneja sold 3,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $450.00, for a total value of $1,350,000.00. Following the transaction, the chief financial officer directly owned 18,106 shares in the company, valued at approximately $8,147,700. This trade represents a 14.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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. Also, Director Kathleen Wilson-Thompson sold 26,409 shares of the 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 transaction, the director owned 48,399 shares in the company, valued at $18,300,145.89. The trade was a 35.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 57,824 shares of company stock worth $21,657,588 over the last quarter. Insiders own 19.90% of the company’s stock.
Institutional Trading of Tesla
Several institutional investors and hedge funds have recently modified their holdings of TSLA. Norges Bank purchased a new position in shares of Tesla in the 4th quarter worth $17,128,100,000. Corient Private Wealth LLC grew its stake in shares of Tesla by 3,205.5% in the 4th quarter. Corient Private Wealth LLC now owns 21,459,599 shares of the electric vehicle producer’s stock worth $9,650,811,000 after buying an additional 20,810,386 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Tesla by 56.0% in the 4th quarter. Bank of America Corp DE now owns 20,755,605 shares of the electric vehicle producer’s stock worth $9,334,211,000 after buying an additional 7,450,766 shares in the last quarter. Cardano Risk Management B.V. grew its stake in shares of Tesla by 882.8% in the 4th quarter. Cardano Risk Management B.V. now owns 8,202,060 shares of the electric vehicle producer’s stock worth $3,688,630,000 after buying an additional 7,367,507 shares in the last quarter. Finally, Vanguard Group Inc. grew its stake in shares of Tesla by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer’s stock worth $116,443,762,000 after buying an additional 6,538,720 shares in the last quarter. 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.