Tesla (NASDAQ:TSLA) Shares Down 2.2% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA) dropped 2.2% on Friday . The stock traded as low as $394.21 and last traded at $396.73. Approximately 63,549,628 shares traded hands during mid-day trading, an increase of 4% from the average daily volume of 61,241,613 shares. The stock had previously closed at $405.55.

Key Tesla News

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Higher oil/gas prices make EV ownership relatively more attractive, which could support Tesla vehicle demand and margins in coming months. Oil prices are surging. Will that help Tesla and others sell more EVs?
• Positive Sentiment: February Europe registrations rose ~10% for Tesla in some reporting, showing pockets of demand resilience despite competitive pressure. Tesla’s Europe registrations rise 10% in February despite sales drops in key markets
• Positive Sentiment: Bank of America issued a buy/upgrade view on Tesla (along with legacy automakers), citing opportunities such as robotaxi upside that could support a longer‑term recovery in sentiment. BofA Upgrades Ford (F), Tesla (TSLA), and GM (GM) Stock: What Investors Need to Know
• Neutral Sentiment: Tesla filed a new patent suggesting a bold seat design for the next‑gen Roadster — an innovation signal but not an immediate revenue driver. Tesla Patent Points to Bold New Seat Design for Next-Gen Roadster
• Negative Sentiment: BYD unveiled ultra‑fast charging tech (claims of near‑full in ~9 minutes), which threatens Tesla’s Supercharger competitive edge and raises execution/market‑share risk. BYD Needs Just 9 Minutes To Challenge Tesla’s Last Great Advantage
• Negative Sentiment: UK sales plunged ~37% year‑over‑year in February, underscoring uneven regional recovery and intensifying competitive pressure from Chinese EV makers. Tesla UK car sales drop 37% as Chinese competition heightens, SMMT data shows
• Negative Sentiment: Analyst action and option‑market signals are bearish: BNP Paribas/Exane cut TSLA targets and near‑term put premiums are elevated, implying hedging/short interest and potential selling pressure. BNP Paribas Exane Cuts Tesla (NASDAQ:TSLA) Price Target to $280.00

Wall Street Analysts Forecast Growth

TSLA has been the topic of several research analyst reports. Needham & Company LLC reissued a “hold” rating on shares of Tesla in a research note on Thursday, January 29th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Tesla in a report on Tuesday, January 27th. CICC Research boosted their price objective on shares of Tesla from $450.00 to $500.00 and gave the company an “outperform” rating in a research report on Thursday, December 18th. Phillip Securities decreased their price objective on shares of Tesla from $220.00 to $215.00 and set a “sell” rating for the company in a report on Monday, February 2nd. Finally, Wells Fargo & Company dropped their target price on shares of Tesla from $130.00 to $125.00 and set an “underweight” rating for the company in a research report on Thursday, January 29th. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and nine have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $406.84.

Tesla Stock Performance

The company has a market capitalization of $1.49 trillion, a PE ratio of 367.34, a PEG ratio of 11.73 and a beta of 1.89. The company has a 50 day moving average of $425.17 and a two-hundred day moving average of $423.32. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.16 and a quick ratio of 1.77.

Tesla (NASDAQ:TSLA) last announced its quarterly earnings data 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. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The business had revenue of $24.90 billion during the quarter, compared to analyst estimates of $24.75 billion. During the same quarter last year, the firm posted $0.73 earnings per share. The company’s revenue for the quarter was down 3.1% on a year-over-year basis. As a group, equities research analysts predict that Tesla, Inc. will post 2.56 earnings per share for the current year.

Insider Buying and Selling at Tesla

In related news, Director James R. Murdoch sold 60,000 shares of Tesla stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the completion of the transaction, the director directly owned 577,031 shares of the company’s stock, valued at $257,009,607.40. This trade represents a 9.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Kathleen Wilson-Thompson sold 25,731 shares of the company’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $415.56, for a total transaction of $10,692,774.36. Following the completion of the sale, the director owned 19,669 shares in the company, valued at approximately $8,173,649.64. This trade represents a 56.68% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 145,188 shares of company stock valued at $64,193,919. Insiders own 19.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its stake in Tesla by 11.8% during the 4th quarter. Brighton Jones LLC now owns 87,929 shares of the electric vehicle producer’s stock valued at $35,509,000 after purchasing an additional 9,293 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in Tesla by 21.2% in the fourth quarter. Revolve Wealth Partners LLC now owns 5,317 shares of the electric vehicle producer’s stock worth $2,147,000 after buying an additional 931 shares during the last quarter. Bison Wealth LLC lifted its stake in shares of Tesla by 52.2% in the fourth quarter. Bison Wealth LLC now owns 10,368 shares of the electric vehicle producer’s stock worth $4,187,000 after buying an additional 3,558 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in shares of Tesla by 9.1% during the second quarter. Sivia Capital Partners LLC now owns 12,135 shares of the electric vehicle producer’s stock valued at $3,855,000 after buying an additional 1,011 shares during the last quarter. Finally, AGP Franklin LLC increased its position in shares of Tesla by 21.2% during the second quarter. AGP Franklin LLC now owns 4,861 shares of the electric vehicle producer’s stock valued at $1,544,000 after acquiring an additional 851 shares in the last quarter. Institutional investors own 66.20% of the company’s stock.

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.