Tesla (NASDAQ:TSLA) Stock Price Down 1.6% – Should You Sell?

Tesla, Inc. (NASDAQ:TSLA) was down 1.6% during mid-day trading on Wednesday . The stock traded as low as $392.31 and last traded at $392.78. Approximately 50,309,197 shares traded hands during trading, a decline of 17% from the average daily volume of 60,762,758 shares. The stock had previously closed at $399.27.

Tesla News Roundup

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: U.S. battery deal — Tesla and LG Energy Solution confirmed a $4.3B agreement to build an LFP cell plant in Michigan to supply Megapack 3 (reduces China reliance and supports energy‑storage revenue). US government confirms Tesla and LG Energy Solution’s $4.3 billion battery deal
• Positive Sentiment: Supply scaling for Tesla chips — Samsung says it will begin volume production of Tesla’s chips in late 2027, easing concerns about Tesla’s ability to produce at scale for AI/robotaxi demand. Samsung Elec plans to produce Tesla chips starting late 2027
• Positive Sentiment: Model Y momentum — Tesla’s Model Y remains the world’s best‑selling car for a third straight year, supporting recurring demand and pricing power for the core product line. Tesla Model Y Emerges As World’s Best-Selling Car For Third Year Despite Sales Decline
• Neutral Sentiment: Terafab timeline and scale — Elon Musk has pushed the Terafab AI‑chip project forward (launch teased for March 21); investors view the tech as strategically important but costly and execution‑intensive. Dear Tesla Stock Fans, Mark Your Calendars for March 21
• Negative Sentiment: Autonomy competition ramps — Nvidia, Lucid and Uber are building a modular AI fleet stack and multiple OEMs are adopting Nvidia DRIVE, challenging Tesla’s full‑stack robotaxi moat and pressuring future FSD value. Forget Tesla — Nvidia And Lucid Are Quietly Building Uber’s AI Fleet
• Negative Sentiment: Nvidia ecosystem threat — Coverage highlights a growing “Tesla challenger army” as Nvidia signs DRIVE partners (Uber, BYD, Geely), which could erode Tesla’s autonomy premium. A Global Tesla Challenger Army Is Forming — And Nvidia Is Its Brain
• Negative Sentiment: Regulatory hit to sales — Tesla is losing its direct‑sales advantage in Washington state, which could slightly raise distribution costs and complicate retail dynamics. Tesla Stock (NASDAQ:TSLA) Slips as Tesla Loses Direct Sales Advantage in Washington State
• Negative Sentiment: Product competition — BMW unveiled a 440‑mile i3 sedan positioned to compete with Tesla at a lower price point, signaling intensifying EV competition across segments. BMW (BAMXF) Stock — Electric i3 Debuts With 440-Mile Range to Challenge Tesla
• Negative Sentiment: Autonomy skepticism — Wall‑street voices (Ross Gerber and others) warn Tesla’s current fleet won’t achieve full autonomy soon, keeping downside risk on FSD monetization. Ross Gerber Says Tesla’s Current Vehicles Won’t Achieve Autonomy—Gary Black Points To Nvidia GTC

Wall Street Analyst Weigh In

Several research firms have recently commented on TSLA. Tigress Financial assumed coverage on Tesla in a report on Thursday, February 12th. They issued a “buy” rating and a $550.00 price target for the company. Mizuho set a $540.00 target price on Tesla and gave the company an “outperform” rating in a report on Thursday, January 29th. Piper Sandler reiterated an “overweight” rating on shares of Tesla in a report on Thursday, January 29th. Cantor Fitzgerald reissued an “overweight” rating and set a $510.00 price objective on shares of Tesla in a report on Thursday, January 29th. Finally, Canaccord Genuity Group set a $520.00 target price on shares of Tesla in a report on Thursday, January 29th. Nineteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and nine have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $406.84.

Tesla Stock Down 1.6%

The firm’s fifty day simple moving average is $418.18 and its 200-day simple moving average is $426.83. The company has a market cap of $1.47 trillion, a PE ratio of 363.75, a P/E/G ratio of 11.70 and a beta of 1.89. The company has a quick ratio of 1.77, a current ratio of 2.16 and a debt-to-equity ratio of 0.08.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.05. The firm had revenue of $24.90 billion during the quarter, compared to the consensus estimate of $24.75 billion. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The company’s quarterly revenue was down 3.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.73 EPS. As a group, equities research analysts expect that Tesla, Inc. will post 2.56 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director James R. Murdoch sold 60,000 shares of the firm’s stock in a transaction that occurred on 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 sale, the director owned 577,031 shares in the company, valued at approximately $257,009,607.40. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Vaibhav Taneja sold 2,264 shares of the stock in a transaction on Friday, March 6th. The stock was sold at an average price of $397.03, for a total value of $898,875.92. Following the transaction, the chief financial officer directly owned 18,106 shares in the company, valued at approximately $7,188,625.18. This represents a 11.11% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 87,995 shares of company stock worth $38,315,650. 19.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Tesla

Several hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in shares of Tesla in the 4th quarter valued at $17,128,100,000. Corient Private Wealth LLC raised its position in shares of Tesla by 3,205.5% in the 4th quarter. Corient Private Wealth LLC now owns 21,459,599 shares of the electric vehicle producer’s stock worth $9,650,811,000 after buying an additional 20,810,386 shares during the period. Bank of America Corp DE boosted its holdings in Tesla by 56.0% in the fourth quarter. Bank of America Corp DE now owns 20,755,605 shares of the electric vehicle producer’s stock valued at $9,334,211,000 after acquiring an additional 7,450,766 shares during the last quarter. Cardano Risk Management B.V. grew its position in Tesla by 882.8% during the fourth quarter. Cardano Risk Management B.V. now owns 8,202,060 shares of the electric vehicle producer’s stock valued at $3,688,630,000 after acquiring an additional 7,367,507 shares during the period. Finally, Vanguard Group Inc. increased its stake in Tesla by 2.6% during the fourth quarter. Vanguard Group Inc. now owns 258,925,024 shares of the electric vehicle producer’s stock worth $116,443,762,000 after acquiring an additional 6,538,720 shares during the last quarter. 66.20% of the stock is owned by institutional investors and hedge funds.

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.