Tesla (NASDAQ:TSLA) Stock Price Down 1.3% Following Weak Earnings

Shares of Tesla, Inc. (NASDAQ:TSLA) were down 1.3% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $372.90 and last traded at $374.01. Approximately 26,792,850 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 56,402,992 shares. The stock had previously closed at $378.93.

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 analysts’ expectations of $26.42 billion. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The firm’s revenue for the quarter was up 25.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.33 earnings per share.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla’s Q2 revenue beat estimates, supported by strong deliveries and record quarterly sales momentum, which helps the long-term growth narrative. Compared to Estimates, Tesla (TSLA) Q2 Earnings: A Look at Key Metrics
• Positive Sentiment: Management continues to highlight robotaxi expansion and broader AI/autonomy ambitions, which keeps speculative upside in focus for investors looking beyond the auto business. Tesla expands robotaxi service to Orlando, Tampa ahead of earnings
• Neutral Sentiment: Analysts and traders are awaiting the earnings call for more detail on margins, cash flow, FSD adoption, and the timing of Cybercab/Optimus commercialization. Tesla set to report second-quarter results after the bell
• Negative Sentiment: Earnings per share missed expectations, margins shrank, and free cash flow turned negative, reinforcing investor concerns that Tesla’s growth is coming with heavier cost pressure than expected. Elon Musk’s Tesla posts cash burn as capex surges on AI, robotaxi push
• Negative Sentiment: Heavy AI and robotaxi spending, plus signs that some production timelines are slipping, are increasing scrutiny on whether Tesla can justify its valuation with near-term earnings. Tesla spending skyrockets as Cybercab, Semi, Megapack production timeline slips

Analysts Set New Price Targets

A number of research firms have recently weighed in on TSLA. Needham & Company LLC reaffirmed a “hold” rating on shares of Tesla in a research note on Thursday, April 23rd. Oppenheimer reissued a “market perform” rating on shares of Tesla in a research note on Thursday, June 11th. Wells Fargo & Company reissued an “underweight” rating and issued a $130.00 price target (up from $125.00) on shares of Tesla in a report on Tuesday, July 14th. JPMorgan Chase & Co. restated a “neutral” rating on shares of Tesla in a research note on Wednesday, June 24th. Finally, UBS Group lifted their price objective on shares of Tesla from $364.00 to $442.00 and gave the company a “neutral” rating in a research report on Thursday, July 9th. Twenty-one equities research analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $414.92.

Insider Activity at Tesla

In other news, CFO Vaibhav Taneja sold 2,606 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $402.20, for a total transaction of $1,048,133.20. Following the sale, the chief financial officer directly owned 22,039 shares of the company’s stock, valued at $8,864,085.80. This represents a 10.57% decrease in their position. The sale was disclosed in a legal filing 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 company’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 32,015 shares of company stock worth $12,383,640 over the last ninety days. Insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Networth Advisors LLC bought a new stake in Tesla during the 4th quarter valued at $26,000. Chapman Financial Group LLC bought a new position in shares of Tesla during the 2nd quarter worth $26,000. Davidson Capital Management Inc. increased its stake in shares of Tesla by 79.4% during the fourth 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. Friedenthal Financial increased its stake in shares of Tesla by 66.7% during the first quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer’s stock valued at $28,000 after buying an additional 30 shares during the period. Finally, Prism Advisors Inc. bought a new stake in shares of Tesla in the fourth quarter valued at about $30,000. Institutional investors own 66.20% of the company’s stock.

Tesla Trading Down 1.3%

The stock’s 50 day moving average is $405.39 and its two-hundred day moving average is $404.00. The company has a market capitalization of $1.40 trillion, a PE ratio of 343.13, a price-to-earnings-growth ratio of 12.72 and a beta of 1.80. The company has a quick ratio of 1.62, a current ratio of 2.04 and a debt-to-equity ratio of 0.09.

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.