Tesla (NASDAQ:TSLA) Stock Falls 2.2% – Here’s What Happened

Tesla, Inc. (NASDAQ:TSLA)’s stock price dropped 2.2% during mid-day trading on Wednesday. The company traded as low as $363.82 and last traded at $367.16. 30,098,340 shares changed hands during trading, a decline of 41% from the average daily volume of 50,857,082 shares. The stock had previously closed at $375.23.

Key Stories Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla’s delayed next-generation Roadster event is scheduled to return Thursday, Oct. 15. Expectations for SpaceX-related features and a possible hover demonstration could provide a short-term sentiment boost, although the event’s impact will depend on credible production and delivery details. Tesla’s Roadster event is back on for Thursday night
• Positive Sentiment: Tesla and Pilot Travel Centers opened their first heavy-duty Megacharger site, with 12 more under construction. The expansion supports Tesla’s commercial-truck strategy and could strengthen its charging-network opportunity. Pilot, Tesla open first Megacharger site
• Positive Sentiment: New California legislation supporting virtual power plants may benefit Tesla’s energy-storage and grid-services business by expanding opportunities to aggregate distributed batteries and other resources. California boosts virtual power plants
• Neutral Sentiment: Tesla’s Q3 vehicle deliveries exceeded analyst expectations at 486,532, but were still lower year over year. Investors will focus on automotive revenue, margins, energy storage, services and the company’s outlook when results are released Oct. 21. Tesla gears up to report Q3 earnings
• Negative Sentiment: Tesla’s proposed Terafab semiconductor plant could improve control over chips for FSD, robotaxis and Optimus, but building and operating an advanced fab would require specialized expertise, years of execution and substantially more capital. Tesla already expects capital spending above $25 billion this year, while its valuation leaves limited room for delays or cost overruns. Tesla wants to make its own chips
• Negative Sentiment: Analysts remain concerned that automotive margins and earnings could decline, while Tesla’s price-to-earnings ratio above 300 reflects substantial expectations for future AI, robotics and autonomy profits. Regulatory scrutiny of Cybercab and questions about Cybertruck demand add further risks. Tesla Q3 earnings and automotive margins

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on TSLA. Morgan Stanley restated a “reduce” rating on shares of Tesla in a research report on Monday, September 14th. Tigress Financial reissued a “buy” rating and set a $550.00 price objective on shares of Tesla in a research note on Thursday, October 8th. Needham & Company LLC restated a “hold” rating on shares of Tesla in a report on Thursday, July 23rd. BMO Capital Markets initiated coverage on Tesla in a research report on Monday, August 17th. They set an “outperform” rating on the stock. Finally, The Goldman Sachs Group raised Tesla from a “neutral” rating to a “buy” rating in a report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, seventeen have issued a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, Tesla currently has an average rating of “Hold” and an average target price of $412.33.

Tesla Price Performance

The stock’s 50-day moving average is $357.69 and its 200-day moving average is $377.09. The firm has a market cap of $1.45 trillion, a P/E ratio of 339.97, a price-to-earnings-growth ratio of 23.17 and a beta of 1.92. The company has a quick ratio of 1.55, a current ratio of 1.94 and a debt-to-equity ratio of 0.09.

Tesla (NASDAQ:TSLA) last released its earnings results on Thursday, July 23rd. The electric vehicle producer reported $0.33 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.17). Tesla had a net margin of 3.67% and a return on equity of 3.82%. The company had revenue of $28.24 billion for the quarter, compared to analyst estimates of $26.42 billion. During the same quarter in the previous year, the company earned $0.33 earnings per share. Tesla’s revenue for the quarter was up 25.5% compared to the same quarter last year. As a group, equities analysts anticipate that Tesla, Inc. will post 0.73 EPS for the current fiscal year.

Insider Activity at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $360.13, for a total transaction of $938,498.78. Following the completion of the transaction, the chief financial officer owned 25,972 shares of the company’s stock, valued at approximately $9,353,296.36. This represents a 9.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 19.90% of the company’s stock.

Hedge Funds Weigh In On Tesla

Large investors have recently added to or reduced their stakes in the company. Clear Trail Advisors LLC increased its holdings in shares of Tesla by 1.6% in the 1st quarter. Clear Trail Advisors LLC now owns 1,628 shares of the electric vehicle producer’s stock valued at $605,000 after acquiring an additional 25 shares during the period. Peirce Capital Management LLC boosted its position in Tesla by 1.5% during the second quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer’s stock valued at $697,000 after purchasing an additional 25 shares in the last quarter. Retirement Planning Group LLC NY grew its stake in Tesla by 3.8% in the first quarter. Retirement Planning Group LLC NY now owns 713 shares of the electric vehicle producer’s stock valued at $265,000 after purchasing an additional 26 shares during the last quarter. Cadence Wealth Management LLC grew its stake in Tesla by 4.7% in the first quarter. Cadence Wealth Management LLC now owns 580 shares of the electric vehicle producer’s stock valued at $216,000 after purchasing an additional 26 shares during the last quarter. Finally, Phillip James Consulting Co. grew its stake in Tesla by 8.7% in the first quarter. Phillip James Consulting Co. now owns 326 shares of the electric vehicle producer’s stock valued at $121,000 after purchasing an additional 26 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Company Profile

Tesla, Inc (NASDAQ:TSLA) designs, manufactures and sells electric vehicles, energy storage systems and solar energy products. Its vehicle lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck and Tesla Semi. The company also develops vehicle software and driver-assistance features, operates a global Supercharger network and provides related vehicle services.

Tesla’s energy business offers battery storage products for residential, commercial and utility customers, including Powerwall and Megapack, as well as solar panels and solar roofing products.