Tesla (NASDAQ:TSLA) Shares Down 2.9% – Time to Sell?

Tesla, Inc. (NASDAQ:TSLA) shares traded down 2.9% during mid-day trading on Monday . The company traded as low as $394.04 and last traded at $399.83. 69,133,147 shares were traded during trading, an increase of 11% from the average session volume of 62,113,285 shares. The stock had previously closed at $411.82.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Model Y six‑seater approval in Australia adds a family‑market product option and fuels hopes for broader market rollout, which could support unit demand if expanded to other regions. Model Y six-seater approval
• Positive Sentiment: Tesla cut prices on the Cybertruck (and introduced a lower‑cost variant), which can boost deliveries and clear order backlogs — constructive for revenue/volume but potentially margin‑dilutive. Cybertruck price cuts
• Positive Sentiment: Erste Group raised earnings estimates for Tesla, reflecting some analyst confidence in near‑term fundamentals. Upward estimate revisions can be a near‑term support for shares. Erste Group increases estimates
• Neutral Sentiment: Analyst coverage remains highly mixed — price targets and ratings show wide dispersion, leaving sentiment fragile and making TSLA sensitive to headlines. Mixed analyst sentiment
• Neutral Sentiment: Tesla dropped the “Autopilot” marketing term and avoided a 30‑day California manufacturing/sales license suspension — a regulatory win that reduces immediate operational risk but doesn’t resolve safety/claims issues. Dropped ‘Autopilot’ term
• Negative Sentiment: Tesla is suing the California DMV to overturn a ruling that it engaged in false advertising over FSD — escalates legal and reputational risk and keeps regulatory scrutiny in focus. Tesla sues California DMV
• Negative Sentiment: Ongoing FSD data issues, recent robotaxi collisions and investor commentary (including calls for hardware changes) are increasing concerns about safety, rollout timing and the company’s autonomous roadmap — a material risk to the valuation narrative that prices in FSD returns. FSD data issues
• Negative Sentiment: EV demand weakness (U.S. EV sales plunged y/y; Tesla selling prices fell) and external threats like tariff talk are pressuring top‑line growth and margins — the “volume vs. price” dynamic is a near‑term headwind. EV sales crater
• Negative Sentiment: Legal payouts and liability remain active — a judge recently ruled Tesla still owes $243M in a fatal Autopilot crash case, adding to potential cash and reputational costs. $243M Autopilot ruling

Analyst Ratings Changes

Several brokerages recently issued reports on TSLA. Benchmark restated a “buy” rating on shares of Tesla in a research report on Wednesday, February 11th. Dbs Bank raised Tesla to a “hold” rating in a research report on Wednesday, November 5th. DZ Bank reissued a “sell” rating on shares of Tesla in a report on Thursday, January 29th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $500.00 price objective on shares of Tesla in a research note on Thursday, January 29th. Finally, BNP Paribas Exane boosted their target price on shares of Tesla from $307.00 to $313.00 in a research note on Monday, December 1st. Eighteen research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and nine have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $408.09.

Tesla Stock Performance

The company has a market cap of $1.50 trillion, a price-to-earnings ratio of 370.21, a price-to-earnings-growth ratio of 14.50 and a beta of 1.86. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.77 and a current ratio of 2.16. The stock’s fifty day simple moving average is $440.65 and its two-hundred day simple moving average is $418.98.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings results 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. The firm had revenue of $24.90 billion during the quarter, compared to the consensus estimate of $24.75 billion. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The firm’s quarterly revenue was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.73 earnings per share. Equities research analysts anticipate that Tesla, Inc. will post 2.56 EPS for the current year.

Insider Transactions at Tesla

In related news, Director James R. Murdoch sold 60,000 shares of Tesla stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the transaction, the director owned 577,031 shares in the company, valued at approximately $257,009,607.40. The trade was a 9.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Vaibhav Taneja sold 2,637 shares of the stock in a transaction on Monday, December 8th. The shares were sold at an average price of $443.93, for a total value 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. This represents a 16.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 119,457 shares of company stock valued at $53,501,145 over the last 90 days. Corporate insiders own 19.90% of the company’s stock.

Institutional Trading of Tesla

Hedge funds have recently made changes to their positions in the company. Networth Advisors LLC bought a new stake in Tesla in the fourth quarter valued at about $26,000. Chapman Financial Group LLC bought a new stake in shares of Tesla in the 2nd quarter valued at approximately $26,000. Davidson Capital Management Inc. raised its position in shares of Tesla by 79.4% during the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock valued at $27,000 after acquiring an additional 27 shares in the last quarter. Manning & Napier Advisors LLC bought a new position in Tesla during the third quarter worth $29,000. Finally, CoreFirst Bank & Trust bought a new stake in Tesla during the second quarter valued at $30,000. Hedge funds and other institutional investors own 66.20% of the company’s stock.

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.