Tesla (NASDAQ:TSLA) Shares Down 5.9% – Should You Sell?

Tesla, Inc. (NASDAQ:TSLA)’s share price traded down 5.9% during trading on Friday . The stock traded as low as $351.32 and last traded at $354.08. Approximately 64,465,107 shares were traded during trading, an increase of 21% from the average session volume of 53,470,055 shares. The stock had previously closed at $376.36.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla began offering limited Cybercab rides in Austin, marking tangible progress toward its long-promised autonomous-vehicle strategy. The company is also soliciting interest from businesses that may purchase Cybercab fleets or provide supporting infrastructure, potentially expanding the model beyond Tesla-operated vehicles. Tesla Cybercab Hits Austin Streets
• Positive Sentiment: Tesla said the Cybercab motor uses no rare-earth metals, which could reduce supply-chain exposure. Separately, French authorities began testing Tesla’s Full Self-Driving technology, a possible step toward European regulatory progress. Cybercab Rare-Earth-Free Motor
• Neutral Sentiment: Technical analysts identified potential support around $330–$331 after the stock failed to hold resistance near $380. A successful rebound could restore momentum, but a break below roughly $347 could increase downside pressure. Tesla Forecast and Technical Levels
• Negative Sentiment: The National Highway Traffic Safety Administration opened an audit involving approximately 1,000 Cybercabs. Regulators are reviewing Tesla’s self-certification and whether a vehicle without a steering wheel, pedals or conventional mirrors complies with federal safety standards, creating potential approval and rollout delays. NHTSA Cybercab Probe
• Negative Sentiment: Analysts and financial media characterized the event as underwhelming, citing limited updates and unanswered questions about manufacturing scale, commercialization and economics. Bearish commentary—including a reiterated sell rating and an extreme downside forecast—added to the pressure, especially given Tesla’s very high earnings multiple and recent EPS miss. Tesla Stock Drops After Cybercab Update

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Jefferies Financial Group set a $400.00 price target on shares of Tesla and gave the stock a “hold” rating in a research report on Monday, July 13th. Evercore raised Tesla from a “hold” rating to an “outperform” rating in a research note on Friday, June 5th. Mizuho set a $450.00 target price on Tesla and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Wells Fargo & Company reiterated an “underweight” rating and issued a $130.00 target price (up from $125.00) on shares of Tesla in a report on Tuesday, July 14th. Finally, TD Cowen restated a “buy” rating on shares of Tesla in a report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, eighteen have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, Tesla has a consensus rating of “Hold” and an average target price of $401.74.

Tesla Trading Down 5.9%

The firm has a market capitalization of $1.40 trillion, a price-to-earnings ratio of 327.85, a price-to-earnings-growth ratio of 17.88 and a beta of 1.84. The company has a current ratio of 1.94, a quick ratio of 1.55 and a debt-to-equity ratio of 0.09. The company has a fifty day moving average price of $358.22 and a 200-day moving average price of $383.10.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings data on Thursday, July 23rd. The electric vehicle producer reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.17). The business 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 period in the previous year, the business posted $0.33 EPS. On average, equities research analysts predict that Tesla, Inc. will post 0.88 EPS for the current year.

Insiders Place Their Bets

In other Tesla 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 completion of the sale, the chief financial officer owned 22,039 shares of the company’s stock, 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 through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

A number of hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System lifted its holdings in shares of Tesla by 41,911.1% during the second quarter. California State Teachers Retirement System now owns 1,797,248,195 shares of the electric vehicle producer’s stock worth $755,922,591,000 after buying an additional 1,792,970,163 shares during the last quarter. State Street Corp lifted its position in shares of Tesla by 0.9% in the 4th quarter. State Street Corp now owns 114,842,934 shares of the electric vehicle producer’s stock worth $51,647,164,000 after acquiring an additional 1,080,085 shares during the period. Geode Capital Management LLC grew its holdings in shares of Tesla by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 65,700,975 shares of the electric vehicle producer’s stock worth $29,426,070,000 after purchasing an additional 375,946 shares in the last quarter. Norges Bank bought a new stake in shares of Tesla during the fourth quarter valued at approximately $17,128,100,000. Finally, Amundi raised its stake in shares of Tesla by 14.0% in the first quarter. Amundi now owns 22,174,884 shares of the electric vehicle producer’s stock valued at $8,243,513,000 after purchasing an additional 2,727,141 shares in the last quarter. 66.20% of the stock is currently owned by 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.