Tesla (NASDAQ:TSLA) Stock Price Down 2% After Analyst Downgrade

Tesla, Inc. (NASDAQ:TSLA) dropped 2% during trading on Monday after Phillip Securities lowered their price target on the stock from $220.00 to $215.00. Phillip Securities currently has a sell rating on the stock. Tesla traded as low as $414.50 and last traded at $421.81. Approximately 56,968,508 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 63,220,051 shares. The stock had previously closed at $430.41.

TSLA has been the topic of a number of other research reports. Stifel Nicolaus set a $508.00 price objective on Tesla in a report on Thursday, January 29th. Canaccord Genuity Group set a $520.00 price target on Tesla in a report on Thursday, January 29th. President Capital dropped their price target on shares of Tesla from $517.00 to $500.00 and set a “buy” rating on the stock in a research report on Friday, January 30th. Roth Mkm set a $505.00 price objective on shares of Tesla and gave the stock a “buy” rating in a report on Thursday, October 23rd. Finally, UBS Group lifted their target price on shares of Tesla from $307.00 to $352.00 and gave the stock a “sell” rating in a report on Thursday, January 29th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and nine have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Tesla currently has a consensus rating of “Hold” and an average target price of $403.92.

Insiders Place Their Bets

In other news, Director Kimbal Musk sold 56,820 shares of the business’s stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $450.66, for a total transaction of $25,606,501.20. Following the transaction, the director owned 1,391,615 shares in the company, valued at approximately $627,145,215.90. The trade was a 3.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Vaibhav Taneja sold 2,637 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the completion of the sale, the chief financial officer owned 13,757 shares of the company’s stock, valued at approximately $6,107,145.01. The trade was a 16.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 119,457 shares of company stock worth $53,501,145 in the last ninety days. Insiders own 19.90% of the company’s stock.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q4 earnings topped expectations and Tesla is getting credit for record energy-storage deployments and resilient automotive margins — a near-term catalyst that supports the stock’s rally narrative. Read More.
• Positive Sentiment: Tesla launched a lower‑priced Model Y AWD at $41,990 to try to stabilize demand and compete on pricing — a tactical move that could help near-term deliveries if uptake is strong. Read More.
• Positive Sentiment: Tesla’s energy business is showing momentum (record Megapack deployments, improving margins) and is repeatedly cited as a material growth pillar beyond cars. That helps justify some bullish analyst views. Read More.
• Neutral Sentiment: Near-term option market: 1‑month put sellers can harvest ~2.5% yield after earnings — attractive income for some investors but also signals elevated implied volatility. Read More.
• Neutral Sentiment: Elon Musk’s SpaceX–xAI merger is prompting speculation about “cross‑pollination” with Tesla (AI, communications, satellites). Potential upside is speculative and timing/structure remain unclear, so impact on TSLA is uncertain. Read More.
• Neutral Sentiment: Tesla plans aggressive 2026 capex (>$20B) to scale factories, AI compute and robotaxis — this supports long‑term growth but raises short‑term execution and free‑cash‑flow questions. Read More.
• Negative Sentiment: China — a key market — will ban hidden/popup door handles starting in 2027 after safety incidents; regulatory changes could force costly vehicle redesigns or slow sales in China. Read More.
• Negative Sentiment: European registrations showed little recovery in January (falls in France and Norway), reinforcing concerns that EV demand softness is weighing on near‑term delivery trends. Read More.
• Negative Sentiment: Competitive threat: Waymo/Alphabet and others are plowing capital into robotaxis (large recent fundraises), increasing the risk Tesla faces in autonomy — a core part of the company’s long‑term valuation. Read More.
• Negative Sentiment: Valuation and analyst divergence: Tesla’s post‑earnings P/E (~400) leaves little margin for error; some firms cut targets (Phillip Securities, JPMorgan), increasing downside risk if execution or growth disappoints. Read More.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake 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. State Street Corp boosted its holdings in Tesla by 0.3% during the third quarter. State Street Corp now owns 113,762,849 shares of the electric vehicle producer’s stock valued at $50,592,614,000 after purchasing an additional 344,162 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Tesla by 2.0% in the 2nd quarter. Geode Capital Management LLC now owns 64,767,993 shares of the electric vehicle producer’s stock valued at $20,480,477,000 after purchasing an additional 1,269,304 shares during the period. Capital World Investors raised its holdings in shares of Tesla by 5.8% in the 3rd quarter. Capital World Investors now owns 44,035,949 shares of the electric vehicle producer’s stock worth $19,583,547,000 after buying an additional 2,403,019 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Tesla during the 2nd quarter worth approximately $11,839,824,000. 66.20% of the stock is owned by institutional investors.

Tesla Trading Up 0.0%

The company has a current ratio of 2.16, a quick ratio of 1.77 and a debt-to-equity ratio of 0.08. The company has a 50 day moving average of $447.83 and a 200 day moving average of $410.15. The firm has a market cap of $1.58 trillion, a price-to-earnings ratio of 390.70, a price-to-earnings-growth ratio of 7.76 and a beta of 1.86.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.05. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The company had revenue of $24.90 billion during the quarter, compared to analysts’ expectations of $24.75 billion. During the same period last year, the business earned $0.73 earnings per share. The business’s revenue was down 3.1% on a year-over-year basis. As a group, research analysts anticipate that Tesla, Inc. will post 2.56 EPS for the current year.

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.