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

Tesla, Inc. (NASDAQ:TSLA) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 changing hands.

The electric vehicle producer reported $0.33 earnings per share for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.17). The business had revenue of $28.24 billion for the quarter, compared to the consensus estimate of $26.42 billion. Tesla had a net margin of 3.67% and a return on equity of 3.82%. The firm’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 business posted $0.33 EPS.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Record quarterly revenue and deliveries show Tesla is still growing its top line. Tesla Just Delivered Record Sales—So Why Did the Stock Sell Off?
• Positive Sentiment: Some investors remain bullish on the long term, with ARK/Cathie Wood buying the dip after the post-earnings slump. Cathie Wood’s Ark Bought the Dip in Tesla Stock
• Neutral Sentiment: Tesla continued to promote robotaxi and Optimus progress, but the market appears to want tangible revenue and execution milestones before rewarding those ambitions. Musk’s bad week: Tesla suffers worst slump since 2022, SpaceX drops ahead of Starship test flight
• Negative Sentiment: Q2 earnings missed expectations, and Tesla reported negative free cash flow as spending surged. Tesla’s once-bullish tone on robotaxis shifts
• Negative Sentiment: Management’s large 2026 capex plan and AI spending push are spooking investors over margins and cash burn. Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’
• Negative Sentiment: Analysts have been lowering price targets following the report, reflecting near-term profitability concerns. Tesla Stock Plunges as Analysts Slash Price Targets after Q2 Earnings Miss

Analysts Set New Price Targets

Several research firms have recently issued reports on TSLA. HSBC reiterated a “hold” rating on shares of Tesla in a research note on Monday, June 15th. The Goldman Sachs Group started coverage on Tesla in a research report on Friday, June 5th. They set a “buy” rating for the company. China Renaissance lowered their price target on Tesla from $382.00 to $372.00 and set a “hold” rating on the stock in a report on Monday, April 27th. Weiss Ratings reissued a “hold (c-)” rating on shares of Tesla in a research report on Tuesday. Finally, President Capital boosted their price objective on shares of Tesla from $424.00 to $428.00 and gave the stock a “buy” rating in a research note on Monday, April 27th. 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 company’s stock. According to data from MarketBeat.com, Tesla presently has an average rating of “Hold” and an average target price of $404.95.

Insider Activity at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 3,000 shares of the company’s stock in a transaction that occurred 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 transaction, the chief financial officer owned 18,106 shares of the company’s stock, valued at $8,147,700. This represents a 14.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 Tesla stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the sale, the director directly owned 48,399 shares in the company, valued at $18,300,145.89. The trade was a 35.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 32,015 shares of company stock valued at $12,383,640. Insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Tesla by 2.6% during the fourth quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer’s stock worth $116,443,762,000 after purchasing an additional 6,538,720 shares during the period. State Street Corp grew its stake in shares of Tesla by 0.9% in the 4th quarter. State Street Corp now owns 114,842,934 shares of the electric vehicle producer’s stock valued at $51,647,164,000 after purchasing an additional 1,080,085 shares during the period. Geode Capital Management LLC raised its holdings in shares of Tesla by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 65,700,975 shares of the electric vehicle producer’s stock worth $29,426,070,000 after buying an additional 375,946 shares in the last quarter. Norges Bank bought a new position in shares of Tesla during the 4th quarter worth approximately $17,128,100,000. Finally, Amundi lifted its position in shares of Tesla by 14.0% during the 1st quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer’s stock worth $8,243,513,000 after buying an additional 2,727,141 shares during the period. Institutional investors own 66.20% of the company’s stock.

Tesla Trading Down 2.1%

The company has a current ratio of 1.94, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09. The company has a 50 day moving average of $400.74 and a 200 day moving average of $402.53. The firm has a market cap of $1.18 trillion, a price-to-earnings ratio of 289.85, a price-to-earnings-growth ratio of 10.73 and a beta of 1.80.

Tesla Company Profile

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.