Tesla (NASDAQ:TSLA) Shares Down 2.1% on Disappointing Earnings

Tesla, Inc. (NASDAQ:TSLA) shares fell 2.1% on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $306.51 and last traded at $313.03. Approximately 62,230,241 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 56,869,629 shares. The stock had previously closed at $319.69.

The electric vehicle producer reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.17). The company had revenue of $28.24 billion for 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%. Tesla’s revenue was up 25.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.33 earnings per share.

More Tesla News

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

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Sanford C. Bernstein raised shares of Tesla from an “underperform” rating to an “outperform” rating in a report on Friday, June 5th. BNP Paribas Exane cut shares of Tesla from a “hold” rating to an “underperform” rating in a report on Friday, June 5th. Evercore raised shares of Tesla from a “hold” rating to an “outperform” rating in a research report on Friday, June 5th. Zacks Research upgraded shares of Tesla from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Finally, Guggenheim started coverage on Tesla in a research report on Monday, June 29th. They issued a “neutral” rating on the stock. Twenty-one research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $404.95.

Insider Transactions at Tesla

In related news, CFO Vaibhav Taneja sold 2,606 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the transaction, the chief financial officer owned 22,039 shares in the company, valued at $8,864,085.80. This represents a 10.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kathleen Wilson-Thompson sold 26,409 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the completion of the sale, the director owned 48,399 shares in the company, valued at $18,300,145.89. This represents a 35.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 32,015 shares of company stock worth $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 stock. MADDEN SECURITIES Corp boosted its stake in shares of Tesla by 3.7% in the 2nd quarter. MADDEN SECURITIES Corp now owns 15,585 shares of the electric vehicle producer’s stock worth $6,555,000 after buying an additional 553 shares during the last quarter. Narwhal Capital Management increased its position in Tesla by 21.4% during the second quarter. Narwhal Capital Management now owns 7,913 shares of the electric vehicle producer’s stock valued at $3,328,000 after acquiring an additional 1,394 shares during the last quarter. Nelson Capital Management LLC lifted its holdings in Tesla by 77.5% in the second quarter. Nelson Capital Management LLC now owns 1,145 shares of the electric vehicle producer’s stock valued at $482,000 after acquiring an additional 500 shares during the period. EdgeRock Capital LLC boosted its position in Tesla by 4.6% in the second quarter. EdgeRock Capital LLC now owns 4,731 shares of the electric vehicle producer’s stock worth $1,990,000 after purchasing an additional 209 shares during the last quarter. Finally, Perryman Financial Advisory Inc. AD boosted its position in Tesla by 109.6% in the second quarter. Perryman Financial Advisory Inc. AD now owns 3,984 shares of the electric vehicle producer’s stock worth $1,676,000 after purchasing an additional 2,083 shares during the last quarter. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla Trading Down 2.1%

The firm has a market capitalization of $1.18 trillion, a P/E ratio of 289.85, a P/E/G ratio of 10.73 and a beta of 1.80. The company has a current ratio of 1.94, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09. The stock has a 50 day simple moving average of $400.74 and a 200-day simple moving average of $402.53.

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.