Tesla (NASDAQ:TSLA) Shares Gap Down Following Weak Earnings

Tesla, Inc. (NASDAQ:TSLA) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $374.01, but opened at $341.00. Tesla shares last traded at $328.6720, with a volume of 21,966,310 shares traded.

The electric vehicle producer reported $0.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.17). The business had revenue of $28.24 billion for the quarter, compared to analysts’ expectations of $26.42 billion. Tesla had a return on equity of 4.89% and a net margin of 3.95%.Tesla’s revenue for the quarter was up 25.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.33 earnings per share.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record quarterly revenue and strong vehicle deliveries, showing that demand for its core business remains solid. Tesla Inc (TSLA) Q2 2026 Earnings Call Highlights
• Positive Sentiment: The company expanded its unsupervised robotaxi service into Orlando and Tampa, reinforcing the long-term autonomy growth story. Tesla expands robotaxi service to Orlando, Tampa ahead of earnings
• Positive Sentiment: Elon Musk and Tesla continue to emphasize upside from robotaxis, Optimus, and AI, which keeps the long-term bull case intact. Musk Calls Optimus ‘Biggest Product Ever’ as Tesla Stock Drops after Q2 Earnings Miss

Wall Street Analyst Weigh In

TSLA has been the subject of several analyst reports. Phillip Securities reduced their price objective on Tesla from $220.00 to $215.00 and set a “sell” rating for the company in a research report on Wednesday, May 13th. The Goldman Sachs Group started coverage on Tesla in a research report on Friday, June 5th. They issued a “buy” rating on the stock. Truist Financial set a $370.00 price target on Tesla in a research report on Thursday. Evercore raised Tesla from a “hold” rating to an “outperform” rating in a research note on Friday, June 5th. Finally, Needham & Company LLC restated a “hold” rating on shares of Tesla in a research note on Thursday. Twenty-one equities research analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $411.77.

Insider Transactions at Tesla

In other Tesla news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the transaction, the director directly owned 48,399 shares of the company’s stock, valued at $18,300,145.89. This represents a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available 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 stock in a transaction dated 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 represents a 14.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 in the last 90 days. Corporate insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

Several hedge funds have recently modified their holdings of TSLA. Norges Bank acquired a new stake in Tesla during the fourth quarter valued at approximately $17,128,100,000. Corient Private Wealth LLC raised its holdings 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 lifted its position in shares of Tesla by 56.0% during 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 during the period. Cardano Risk Management B.V. boosted its stake in 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 valued at $3,688,630,000 after buying an additional 7,367,507 shares in the last quarter. Finally, Vanguard Group Inc. grew its position in Tesla by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer’s stock valued at $116,443,762,000 after acquiring an additional 6,538,720 shares during the period. 66.20% of the stock is owned by institutional investors.

Tesla Stock Performance

The stock has a fifty day simple moving average of $405.39 and a 200-day simple moving average of $404.00. 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 company has a market capitalization of $1.22 trillion, a P/E ratio of 299.65, a PEG ratio of 12.72 and a beta of 1.80.

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.