Tesla (NASDAQ:TSLA) Stock Price Down 2.6% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA)’s share price dropped 2.6% during trading on Thursday . The company traded as low as $414.00 and last traded at $417.07. Approximately 61,217,828 shares traded hands during mid-day trading, a decline of 3% from the average daily volume of 63,385,262 shares. The stock had previously closed at $428.27.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tencent cloud deal strengthens Tesla’s China product offering — partnership will add WeChat‑linked in‑car features and faster OTA updates, helping retention and revenue in Tesla’s largest EV market. Tencent, Tesla team up on WeChat-linked in-car features in China
• Positive Sentiment: Chinese regulator moving to curb price wars in EVs should reduce cutthroat discounting and stabilize margins/pricing for incumbents like Tesla in China. Tesla Stock Rises as Chinese Watchdog Moves to Tame Cutthroat Price War
• Positive Sentiment: New analyst coverage: Tigress Financial initiated coverage with a Buy and $550 target — a sizeable upside thesis that can support investor demand if momentum returns. Tigress Financial buy rating
• Positive Sentiment: Product demand signal — Model Y again was California’s best‑selling new vehicle in 2025, underscoring durable retail demand in a key market. Model Y top seller in California
• Neutral Sentiment: Trademark dispute timing extended — a 30‑day extension on the Cybercab trademark fight gives Tesla short breathing room but keeps uncertainty alive. Expect further headlines until resolved. Cybercab trademark extension
• Neutral Sentiment: Technicals and analyst targets create a fragile rally setup — momentum indicators improving but valuation and a broken uptrend leave the rebound susceptible to failure (MarketBeat analysis). (MarketBeat article summary)
• Negative Sentiment: Tesla lost the top EV seller crown in Europe to Volkswagen — a market‑share decline in Europe raises execution questions and highlights intensifying competition. As Tesla Loses in Europe
• Negative Sentiment: Competition and talent/technical risk: Apptronik’s big funding round and continued progress on humanoid robots intensifies competition for Optimus, and a Tesla AI/infra VP recently departed — both increase execution risk on the robotics/AI front. Apptronik raises $520M AI lead departs
• Negative Sentiment: Persistent valuation concerns and bearish commentary (e.g., pieces arguing TSLA could head to ~$300) add downside pressure if growth or AI/robotics profit evidence disappoints. Is Tesla Stock Headed To $300?

Wall Street Analyst Weigh In

TSLA has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Tesla from $500.00 to $480.00 and set a “buy” rating on the stock in a report on Friday, January 30th. BNP Paribas Exane boosted their price objective on Tesla from $307.00 to $313.00 in a research note on Monday, December 1st. Wall Street Zen raised shares of Tesla from a “sell” rating to a “hold” rating in a report on Saturday, October 25th. Stifel Nicolaus set a $508.00 price target on shares of Tesla in a report on Thursday, January 29th. Finally, Mizuho set a $540.00 price target on Tesla and gave the company an “outperform” rating in a report on Thursday, January 29th. Eighteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and nine have assigned a Sell rating to the stock. According to data from MarketBeat.com, Tesla currently has a consensus rating of “Hold” and an average price target of $408.09.

Tesla Stock Down 2.6%

The firm has a market cap of $1.57 trillion, a PE ratio of 386.18, a PEG ratio of 14.24 and a beta of 1.86. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.16 and a quick ratio of 1.77. The stock has a 50 day simple moving average of $445.74 and a 200-day simple moving average of $413.37.

Tesla (NASDAQ:TSLA) last issued its earnings results on Wednesday, January 28th. The electric vehicle producer reported $0.50 EPS for the quarter, beating the consensus estimate of $0.45 by $0.05. The business had revenue of $24.90 billion for 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 company’s revenue was down 3.1% compared to the same quarter last year. During the same period last year, the business posted $0.73 EPS. Sell-side analysts predict that Tesla, Inc. will post 2.56 EPS for the current fiscal year.

Insider Activity

In other Tesla news, Director James R. Murdoch sold 60,000 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $445.40, for a total value of $26,724,000.00. Following the completion of the transaction, the director directly owned 577,031 shares in the company, valued at $257,009,607.40. This represents a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 value of $25,606,501.20. Following the completion of the transaction, the director owned 1,391,615 shares in the company, valued at $627,145,215.90. The trade was a 3.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 119,457 shares of company stock valued at $53,501,145 in the last ninety days. Corporate insiders own 19.90% of the company’s stock.

Institutional Trading of Tesla

Several hedge funds have recently made changes to their positions in TSLA. Chapman Financial Group LLC acquired a new position in Tesla during the second quarter worth $26,000. Networth Advisors LLC acquired a new stake in shares of Tesla during the 4th quarter worth approximately $26,000. Davidson Capital Management Inc. raised its holdings in Tesla by 79.4% in the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock valued at $27,000 after buying an additional 27 shares during the period. Manning & Napier Advisors LLC acquired a new stake in shares of Tesla during the third quarter valued at about $29,000. Finally, LGT Financial Advisors LLC purchased a new stake in shares of Tesla in the 2nd quarter valued at approximately $29,000. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

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.