Tesla (NASDAQ:TSLA) Shares Down 10.8% – What’s Next?

Tesla, Inc. (NASDAQ:TSLA) shares fell 10.8% during mid-day trading on Thursday. The stock traded as low as $338.15 and last traded at $343.69. Approximately 78,257,730 shares traded hands during trading, an increase of 56% from the average daily volume of 50,233,453 shares. The stock had previously closed at $385.19.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla registrations rose sharply in several European markets, including a reported 248% increase in Sweden, as higher fuel prices may be supporting EV demand. The reports also note that BYD and other Chinese competitors are gaining ground. Tesla European registrations
• Positive Sentiment: Tesla has expanded its Robotaxi service to Fort Worth, while FSD subscriptions reportedly exceed 1.7 million—potential growth drivers, although autonomy-related profits remain limited relative to the stock’s valuation. Robotaxi and FSD update
• Neutral Sentiment: The opening of Tesla’s Berlin Engineering Center adds engineering capacity in Europe, but the report does not indicate an immediate financial contribution. Berlin Engineering Center
• Negative Sentiment: The main near-term drag is the Democratic sweep of Congress and election results in Texas. Investors fear increased scrutiny and tougher rules for Musk-related AI and data-center projects, potentially complicating Tesla’s expansion plans. Election fallout for Tesla and SpaceX
• Negative Sentiment: Political uncertainty has also clouded prospects for a possible Tesla–SpaceX merger. Investor Gary Black warned that an all-stock deal’s proposed premium could evaporate, raising concerns about dilution and deal value. Merger and dilution concerns
• Negative Sentiment: Valuation remains vulnerable: commentary highlights pressure on earnings and margins alongside heavy planned spending, while Tesla trades at a steep multiple to current profits. GLJ Research also reaffirmed its “sell” rating. GLJ Research rating
• Negative Sentiment: Additional regulatory overhangs include a South Korean consumer group’s allegation that Tesla misled customers about automated-driving technology, and a Vietnam probe deadline that could affect production plans. Regulatory and business risks

Wall Street Analysts Forecast Growth

TSLA has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Tesla in a research report on Monday, October 19th. JPMorgan Chase & Co. raised their price target on Tesla from $415.00 to $430.00 and gave the stock a “neutral” rating in a research note on Thursday, October 22nd. BNP Paribas Exane upgraded Tesla from an “underperform” rating to a “neutral” rating and lifted their price target for the company from $266.00 to $420.00 in a report on Thursday, October 22nd. Mizuho lifted their price target on Tesla from $450.00 to $460.00 and gave the company an “outperform” rating in a report on Thursday, October 22nd. Finally, Morgan Stanley raised shares of Tesla from a “reduce” rating to an “overweight” rating in a research note on Monday, October 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, sixteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Tesla presently has a consensus rating of “Moderate Buy” and a consensus target price of $414.51.

Tesla Stock Performance

The stock has a 50 day simple moving average of $372.12 and a 200 day simple moving average of $385.12. The company has a quick ratio of 1.39, a current ratio of 1.74 and a debt-to-equity ratio of 0.09. The company has a market cap of $1.36 trillion, a price-to-earnings ratio of 377.69, a PEG ratio of 24.68 and a beta of 1.74.

Tesla (NASDAQ:TSLA) last posted its earnings results on Wednesday, October 21st. The electric vehicle producer reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.02. The business had revenue of $28.05 billion for the quarter, compared to analysts’ expectations of $28.06 billion. Tesla had a net margin of 3.11% and a return on equity of 3.03%. The business’s revenue for the quarter was down .2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.50 earnings per share. As a group, analysts predict that Tesla, Inc. will post 0.67 EPS for the current year.

Insider Activity

In other news, CFO Vaibhav Taneja sold 2,606 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $360.13, for a total transaction of $938,498.78. Following the completion of the transaction, the chief financial officer directly owned 25,972 shares of the company’s stock, valued at approximately $9,353,296.36. This represents a 9.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 20.00% of the company’s stock.

Hedge Funds Weigh In On Tesla

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Peirce Capital Management LLC raised its position in Tesla by 1.5% in the 2nd quarter. Peirce Capital Management LLC now owns 1,657 shares of the electric vehicle producer’s stock valued at $697,000 after purchasing an additional 25 shares in the last quarter. Cadence Wealth Management LLC boosted its stake in shares of Tesla by 4.7% in the 1st quarter. Cadence Wealth Management LLC now owns 580 shares of the electric vehicle producer’s stock valued at $216,000 after buying an additional 26 shares during the period. Phillip James Consulting Co. grew its position in shares of Tesla by 8.7% during the first quarter. Phillip James Consulting Co. now owns 326 shares of the electric vehicle producer’s stock worth $121,000 after buying an additional 26 shares in the last quarter. Crumly & Associates Inc. grew its position in shares of Tesla by 0.6% during the second quarter. Crumly & Associates Inc. now owns 4,698 shares of the electric vehicle producer’s stock worth $1,976,000 after buying an additional 26 shares in the last quarter. Finally, Brickley Wealth Management increased its stake in shares of Tesla by 3.6% during the second quarter. Brickley Wealth Management now owns 757 shares of the electric vehicle producer’s stock worth $318,000 after buying an additional 26 shares during the period. 66.20% of the stock is owned by institutional investors.

Tesla Company Profile

Tesla, Inc is an electric vehicle and clean energy company headquartered in Austin, Texas. Founded in 2003, the company designs, manufactures and sells electric vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck. Tesla also develops vehicle software, driver-assistance features and related services intended to support the operation and ownership of its vehicles.

Beyond automobiles, Tesla produces energy storage products for residential, commercial and utility-scale applications, including the Powerwall and Megapack.