Tesla (NASDAQ:TSLA) Shares Down 14.5% Following Weak Earnings

Tesla, Inc. (NASDAQ:TSLA) shares were down 14.5% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $315.73 and last traded at $319.69. Approximately 114,492,156 shares traded hands during mid-day trading, an increase of 101% from the average daily volume of 56,858,168 shares. The stock had previously closed at $374.01.

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

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q2 revenue came in above expectations and Tesla reported record deliveries, showing demand for its vehicles remains resilient. Tesla shares fall after earnings miss despite record deliveries and AI investment (NASDAQ:TSLA)
• Positive Sentiment: Tesla highlighted continued progress in FSD, robotaxi scaling, and Optimus production, which supports the long-term growth story if execution improves. Elon Musk Explains Why Tesla Is Scaling Robotaxi So Slowly
• Neutral Sentiment: Some analysts reiterated positive long-term views, but several also cut price targets and kept neutral ratings, reflecting a split outlook on Tesla’s near-term profits versus autonomy upside.
• Neutral Sentiment: France’s opposition to EU approval of Tesla’s current FSD software adds another regulatory hurdle for its driver-assistance ambitions overseas. France opposes EU approval of Tesla’s FSD driver assistance software for now
• Negative Sentiment: Investors are reacting to the earnings miss, negative free cash flow, and margin compression, which suggest Tesla’s core auto business is under pressure as spending rises. Tesla Stock Tumbles After Big Earnings Miss
• Negative Sentiment: The company’s aggressive AI and robotaxi spending is creating fears of a cash squeeze, and Wall Street appears to want clearer proof that those investments will pay off soon. Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’

Wall Street Analyst Weigh In

Several research analysts recently commented on TSLA shares. China Renaissance cut their price target on Tesla from $382.00 to $372.00 and set a “hold” rating on the stock in a research note on Monday, April 27th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Tesla in a research note on Tuesday, June 30th. Truist Financial set a $370.00 price objective on shares of Tesla and gave the company a “hold” rating in a research note on Thursday. William Blair restated a “market perform” rating on shares of Tesla in a research note on Thursday, July 2nd. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Tesla in a research note on Thursday. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $406.42.

Insider Activity

In other Tesla news, Director Kathleen Wilson-Thompson sold 26,409 shares of Tesla stock in a transaction that occurred on 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 transaction, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. The trade was a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at $8,864,085.80. This represents a 10.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 32,015 shares of company stock valued at $12,383,640 in the last ninety days. Corporate insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Networth Advisors LLC acquired a new stake in shares of Tesla during the 4th quarter valued at about $26,000. Chapman Financial Group LLC acquired a new stake in Tesla during the 2nd quarter worth $26,000. Davidson Capital Management Inc. raised its position in shares of Tesla by 79.4% in the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock valued at $27,000 after acquiring an additional 27 shares during the period. Friedenthal Financial grew its stake in Tesla by 66.7% in 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 period. Finally, Prism Advisors Inc. bought a new position in Tesla during the 4th quarter worth about $30,000. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Stock Down 14.5%

The company has a market capitalization of $1.20 trillion, a P/E ratio of 293.29, a PEG ratio of 12.72 and a beta of 1.80. The firm’s 50 day moving average price is $405.39 and its two-hundred day moving average price is $404.00. The company has a current ratio of 2.04, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09.

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.