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

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

The electric vehicle producer reported $0.33 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.17). The company had revenue of $28.24 billion during 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 business’s revenue was up 25.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.33 earnings per share.

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

A number of equities analysts recently weighed in on TSLA shares. Royal Bank Of Canada reissued an “outperform” rating and set a $500.00 target price on shares of Tesla in a research note on Thursday. William Blair reaffirmed a “market perform” rating on shares of Tesla in a research report on Thursday, July 2nd. Erste Group Bank upgraded Tesla from a “sell” rating to a “hold” rating in a report on Friday, June 5th. Oppenheimer reissued a “market perform” rating on shares of Tesla in a research report on Thursday. Finally, Sanford C. Bernstein upgraded Tesla from an “underperform” rating to an “outperform” rating in a research report on Friday, June 5th. Twenty-one research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Tesla currently has a consensus rating of “Hold” and an average target price of $404.95.

Insider Buying and Selling at Tesla

In other news, Director Kathleen Wilson-Thompson sold 26,409 shares of the firm’s stock in a transaction dated 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 completion of the sale, the director directly owned 48,399 shares in the company, valued at $18,300,145.89. This trade represents a 35.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 2,606 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $402.20, for a total value of $1,048,133.20. Following the completion of the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at $8,864,085.80. The trade was 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. Over 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

A number of hedge funds have recently added to or reduced their stakes in the company. PFS Partners LLC lifted its holdings in shares of Tesla by 4.2% in the 4th quarter. PFS Partners LLC now owns 590 shares of the electric vehicle producer’s stock worth $265,000 after purchasing an additional 24 shares in the last quarter. Woodmont Investment Counsel LLC increased its stake in Tesla by 1.2% during the 4th quarter. Woodmont Investment Counsel LLC now owns 2,124 shares of the electric vehicle producer’s stock valued at $955,000 after purchasing an additional 25 shares in the last quarter. Aspect Partners LLC raised its holdings in Tesla by 12.5% during the fourth quarter. Aspect Partners LLC now owns 225 shares of the electric vehicle producer’s stock worth $101,000 after buying an additional 25 shares during the last quarter. Human Investing LLC lifted its stake in shares of Tesla by 4.5% in the fourth quarter. Human Investing LLC now owns 578 shares of the electric vehicle producer’s stock valued at $260,000 after buying an additional 25 shares in the last quarter. Finally, SilverOak Wealth Management LLC lifted its stake in shares of Tesla by 2.3% in the fourth quarter. SilverOak Wealth Management LLC now owns 1,117 shares of the electric vehicle producer’s stock valued at $502,000 after buying an additional 25 shares in the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.

Tesla Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.94 and a quick ratio of 1.62. The business’s fifty day moving average price is $400.74 and its 200-day moving average price is $402.53. The stock has a market capitalization of $1.18 trillion, a price-to-earnings ratio of 289.85, a PEG 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.