Tesla (NASDAQ:TSLA) Trading Down 4.1% Following Analyst Downgrade

Tesla, Inc. (NASDAQ:TSLA)’s stock price dropped 4.1% on Tuesday after President Capital lowered their price target on the stock from $529.00 to $517.00. President Capital currently has a buy rating on the stock. Tesla traded as low as $428.78 and last traded at $432.96. Approximately 88,308,152 shares changed hands during mid-day trading, an increase of 10% from the average daily volume of 80,474,117 shares. The stock had previously closed at $451.67.

A number of other brokerages also recently weighed in on TSLA. Stifel Nicolaus raised their target price on shares of Tesla from $483.00 to $508.00 and gave the company a “buy” rating in a research note on Monday, November 17th. Piper Sandler restated an “overweight” rating and issued a $500.00 price target on shares of Tesla in a research note on Tuesday, December 9th. Cantor Fitzgerald set a $510.00 price objective on Tesla and gave the company an “overweight” rating in a research note on Thursday, October 23rd. Morgan Stanley set a $425.00 target price on Tesla and gave the stock an “equal weight” rating in a research note on Sunday, December 7th. Finally, DZ Bank restated a “sell” rating on shares of Tesla in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, fourteen have assigned a Hold rating and nine have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $408.36.

Insider Buying and Selling

In other news, Director James R. Murdoch sold 60,000 shares of Tesla 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 sale, the director directly owned 577,031 shares in the company, valued at $257,009,607.40. The trade was a 9.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Vaibhav Taneja sold 2,637 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the transaction, the chief financial officer owned 13,757 shares in the company, valued at approximately $6,107,145.01. This trade represents a 16.09% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 119,457 shares of company stock worth $53,501,145. 19.90% of the stock is owned by corporate insiders.

More Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: New Street Research raised its price target to $600 and maintained a Buy rating, signaling some sell‑side conviction that upside remains despite short‑term pain. Read More.
• Positive Sentiment: Tesla is offering zero‑interest loans on Model 3 and Y in China to regain market traction — a tactical move to support volume in a key market. Read More.
• Positive Sentiment: Some analysts and commentators see signs of stabilization (U.S. share gains and energy/AI levers) that could support a recovery if Tesla demonstrates demand and execution improvement. Read More.
• Neutral Sentiment: MarketBeat notes two ways to trade TSLA into January earnings — buy the dip (if you trust the long‑term story) or wait for post‑earnings confirmation given weakened short‑term technicals. Read More.
• Neutral Sentiment: Elon Musk has downplayed an immediate threat from Nvidia, while acknowledging some Nvidia tech could be competitive in several years — a mixed signal about timing of competitive risk. Read More.
• Negative Sentiment: Nvidia’s Alpamayo rollout and broader push into autonomous‑driving AI is prompting investors to rethink Tesla’s AI advantage, increasing competitive pressure on Tesla’s FSD/robotaxi ambitions. Read More.
• Negative Sentiment: Tesla reported another year of lower vehicle deliveries (2025 decline, Q4 miss) and faces falling shipments in China, UK and Germany — concrete demand/market‑share headwinds versus rivals like BYD. Read More.
• Negative Sentiment: Multiple firms have reaffirmed sell/concerned ratings (UBS, HSBC, JPMorgan, DZ Bank) and critics cite valuation and execution risk — analyst divergence raises volatility risk. Read More.
• Negative Sentiment: Regulatory risk: a U.S. lawmaker is preparing a bill to require manual door releases — a potential design/regulatory headwind given Tesla’s popular electrically powered handles. Read More.
• Negative Sentiment: Brand/product execution issues: a key product name (Cybercab) was reportedly unavailable for trademark, adding uncertainty around product rollout/marketing. Read More.
• Negative Sentiment: Insider activity: Director James R. Murdoch sold 60,000 shares (SEC filing), an action that can weigh on sentiment even if it’s routine diversification. Read More.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Relyea Zuckerberg Hanson LLC boosted its holdings in shares of Tesla by 0.4% in the third quarter. Relyea Zuckerberg Hanson LLC now owns 6,558 shares of the electric vehicle producer’s stock worth $2,916,000 after buying an additional 23 shares during the last quarter. Equita Financial Network Inc. raised its position in Tesla by 2.8% in the third quarter. Equita Financial Network Inc. now owns 855 shares of the electric vehicle producer’s stock worth $380,000 after acquiring an additional 23 shares during the period. VanderPol Investments L.L.C. boosted its stake in shares of Tesla by 2.2% during the 3rd quarter. VanderPol Investments L.L.C. now owns 1,070 shares of the electric vehicle producer’s stock worth $464,000 after acquiring an additional 23 shares during the last quarter. Resonant Capital Advisors LLC grew its position in shares of Tesla by 0.3% during the 3rd quarter. Resonant Capital Advisors LLC now owns 8,577 shares of the electric vehicle producer’s stock valued at $3,814,000 after acquiring an additional 23 shares during the period. Finally, Cloud Capital Management LLC increased its stake in shares of Tesla by 1.1% in the 3rd quarter. Cloud Capital Management LLC now owns 2,076 shares of the electric vehicle producer’s stock worth $923,000 after purchasing an additional 23 shares in the last quarter. 66.20% of the stock is owned by hedge funds and other institutional investors.

Tesla Trading Down 4.1%

The company has a market capitalization of $1.44 trillion, a P/E ratio of 288.64, a PEG ratio of 7.23 and a beta of 1.83. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.67 and a current ratio of 2.07. The stock has a fifty day moving average of $445.20 and a 200 day moving average of $393.52.

Tesla (NASDAQ:TSLA) last posted its quarterly earnings results on Thursday, October 23rd. The electric vehicle producer reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.02. The business had revenue of $28.10 billion for the quarter, compared to analysts’ expectations of $24.98 billion. Tesla had a return on equity of 6.61% and a net margin of 5.51%.The business’s quarterly revenue was up 11.6% on a year-over-year basis. During the same period last year, the firm earned $0.72 earnings per share. As a group, equities research analysts anticipate that Tesla, Inc. will post 2.56 EPS for the current fiscal year.

About Tesla

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.