Tesla (NASDAQ:TSLA) Trading Down 7.5% – Here’s Why

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

More Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla’s Q2 deliveries beat estimates by a wide margin, signaling stronger-than-expected demand and a rebound in the company’s auto business. Tesla Second Quarter 2026 Production, Deliveries & Deployments
• Positive Sentiment: Tesla launched the six-seat, long-wheelbase Model Y L in the U.S., a new variant aimed at boosting sales and expanding its lineup beyond the standard SUV. Tesla launches six-seater Model Y L in US to boost sales
• Positive Sentiment: Tesla expanded its robotaxi service to Miami, reinforcing the market’s long-term autonomy and AI growth narrative. Tesla rolls out robotaxi service in Miami
• Neutral Sentiment: Analysts remain split: some raised earnings estimates or price targets after the delivery beat, but several still view the stock as fairly valued given Tesla’s high multiple and margin risk. Tesla Stock Price Forecast — What Financial Analysts Expect After Q2 Deliveries
• Negative Sentiment: Despite the delivery beat, the stock has been pressured by “sell-the-news” behavior as investors focus on profitability, competition, and whether growth can hold up after recent gains. Tesla Reports Strong Deliveries, Yet Investors Remain Unimpressed
• Negative Sentiment: Safety headlines remain a drag, including a fatal Tesla Semi crash and a Texas manslaughter case tied to Autopilot-related driving, which can keep regulatory and reputational risk in focus. Tesla driver charged with manslaughter over crash into Texas home

Analysts Set New Price Targets

A number of analysts have commented on the company. Erste Group Bank upgraded Tesla from a “sell” rating to a “hold” rating in a research report on Friday, June 5th. Oppenheimer restated a “market perform” rating on shares of Tesla in a research report on Thursday, June 11th. Truist Financial lifted their price target on Tesla from $400.00 to $430.00 and gave the stock a “hold” rating in a research note on Thursday. President Capital increased their price objective on shares of Tesla from $424.00 to $428.00 and gave the company a “buy” rating in a research note on Monday, April 27th. Finally, BTIG Research downgraded shares of Tesla to a “neutral” rating in a report on Friday, June 5th. Twenty-one research analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $403.92.

Tesla Stock Performance

The business’s fifty day moving average price is $407.39 and its 200 day moving average price is $411.79. 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 firm has a market capitalization of $1.48 trillion, a PE ratio of 360.96, a P/E/G ratio of 15.61 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 (EPS) for the quarter, beating 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 quarter in the prior year, the firm posted $0.27 earnings per share. The company’s quarterly revenue was up 15.8% compared to the same quarter last year. As a group, analysts expect that Tesla, Inc. will post 1.2 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Vaibhav Taneja sold 3,000 shares of Tesla stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total value of $1,350,000.00. Following the completion of the sale, the chief financial officer owned 18,106 shares of the company’s stock, valued at $8,147,700. The trade was a 14.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 company’s stock in a transaction 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 completion of the transaction, the director owned 48,399 shares of the company’s stock, valued at $18,300,145.89. The trade was a 35.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 32,015 shares of company stock worth $12,383,640. Corporate insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. PFS Partners LLC grew its holdings in Tesla by 4.2% in the fourth quarter. PFS Partners LLC now owns 590 shares of the electric vehicle producer’s stock valued at $265,000 after purchasing an additional 24 shares during the period. Boltwood Capital Management increased its position in Tesla by 1.2% during the fourth quarter. Boltwood Capital Management now owns 2,120 shares of the electric vehicle producer’s stock worth $953,000 after purchasing an additional 25 shares during the last quarter. Woodmont Investment Counsel LLC raised its stake in Tesla by 1.2% during the fourth quarter. Woodmont Investment Counsel LLC now owns 2,124 shares of the electric vehicle producer’s stock worth $955,000 after purchasing an additional 25 shares during the period. Aspect Partners LLC boosted its holdings in shares of Tesla by 12.5% in the 4th quarter. Aspect Partners LLC now owns 225 shares of the electric vehicle producer’s stock valued at $101,000 after purchasing an additional 25 shares during the last quarter. Finally, Human Investing LLC boosted its holdings in shares of Tesla by 4.5% in the 4th quarter. Human Investing LLC now owns 578 shares of the electric vehicle producer’s stock valued at $260,000 after purchasing an additional 25 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.

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.