Tesla (NASDAQ:TSLA) Stock Price Down 7.5% – Time to Sell?

Tesla, Inc. (NASDAQ:TSLA)’s share price traded down 7.5% during trading on Thursday . The stock traded as low as $389.30 and last traded at $393.45. Approximately 71,879,953 shares changed hands during mid-day trading, an increase of 22% from the average daily volume of 58,747,934 shares. The stock had previously closed at $425.30.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported Q2 deliveries of 480,126 vehicles, well above Wall Street expectations, reinforcing that demand rebounded strongly in the quarter. Reuters: 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 key overseas markets and suggesting improving international momentum. Reuters: Tesla’s China-made EV sales rise 24.4% year on year in June
• Positive Sentiment: The National Highway Traffic Safety Administration closed its probe into Tesla’s braking issue, removing one regulatory overhang and indicating the problem was deemed low risk and addressed through software updates. Reuters: U.S. closes 2022 probe into 695,000 Tesla vehicles over unexpected braking
• Positive Sentiment: Tesla launched a new six-seat Model Y variant, adding a fresh product angle that could help support demand. Article: Tesla Launches New Six-Seat Model Y Electric Vehicle
• Neutral Sentiment: Analysts remain mixed: Morgan Stanley and Truist raised their price targets, but ratings stayed cautious, reflecting a balance between stronger deliveries and valuation concerns. Benzinga analyst notes
• Negative Sentiment: Shares are also being hit by a classic “sell-the-news” reaction after a big pre-report run-up, with investors looking past the delivery beat and toward future margin pressure. Quiver Quantitative: Tesla Slides Despite Strong Q2 Deliveries
• Negative Sentiment: Michael Burry disclosed a new short position in Tesla, adding to bearish sentiment around the stock’s already rich valuation and long-term execution risk. Benzinga: Big Short Investor Michael Burry Reveals Tesla, Nvidia Shorts
• Negative Sentiment: A fatal crash involving a Tesla Semi and fresh safety headlines are keeping investor attention on Tesla’s broader vehicle safety profile. Forbes: Tesla’s Electric Semi Has Its First Fatal Crash

Analyst Ratings Changes

A number of brokerages have weighed in on TSLA. Zacks Research upgraded shares of Tesla from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Erste Group Bank upgraded Tesla from a “sell” rating to a “hold” rating in a research note on Friday, June 5th. Jefferies Financial Group increased their price target on Tesla from $350.00 to $375.00 and gave the stock a “hold” rating in a research report on Monday, June 22nd. Truist Financial raised their price objective on Tesla from $400.00 to $430.00 and gave the company a “hold” rating in a report on Thursday. Finally, Bank of America assumed coverage on Tesla in a research report on Wednesday, March 4th. They issued a “buy” rating and a $460.00 price objective for the company. Twenty-one analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $403.92.

Tesla Price Performance

The company has a 50-day moving average of $407.13 and a 200 day moving average of $412.38. 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 $1.48 trillion, a PE ratio of 360.96, a PEG ratio of 16.72 and a beta of 1.80.

Tesla (NASDAQ:TSLA) last announced its quarterly earnings data on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share for the quarter, beating 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 company had revenue of $22.39 billion for the quarter, compared to analyst estimates of $22.96 billion. During the same quarter last year, the firm posted $0.27 EPS. 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

In other Tesla news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $378.11, for a total value of $9,985,506.99. Following the completion of the sale, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 firm’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 transaction of $1,350,000.00. Following the completion of the transaction, the chief financial officer directly owned 18,106 shares in the company, valued at $8,147,700. This trade represents 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. Over the last three months, insiders sold 32,015 shares of company stock worth $12,383,640. Insiders own 19.90% of the company’s stock.

Hedge Funds Weigh In On Tesla

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TSLA. Networth Advisors LLC purchased a new position in Tesla during the fourth quarter worth about $26,000. Chapman Financial Group LLC acquired a new position in Tesla in the second quarter valued at about $26,000. Davidson Capital Management Inc. boosted its stake in Tesla by 79.4% during the fourth quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock worth $27,000 after buying an additional 27 shares during the period. Friedenthal Financial increased its position in shares of Tesla by 66.7% during the first quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer’s stock valued at $28,000 after acquiring an additional 30 shares during the last quarter. Finally, Prism Advisors Inc. purchased a new stake in shares of Tesla in the 4th quarter valued at approximately $30,000. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Company Profile

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.