Tesla (NASDAQ:TSLA) Shares Down 1.3% on Disappointing Earnings

Key Points

• Tesla shares fell 1.3% after its latest earnings report disappointed investors, with the stock trading lower despite a brief intraday low of $372.90.
• The company beat EPS expectations with $0.41 per share versus $0.39 expected, but revenue missed at $22.39 billion compared with the $22.96 billion consensus.
• Investor focus remains on Tesla’s margin pressure, heavy AI/robotaxi spending, and autonomy risks, while recent headlines also highlight strong Q2 deliveries and expansion of robotaxi services.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report) was down 1.3% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $372.90 and last traded at $374.01. Approximately 26,792,850 shares were traded during 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 $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.02. The business had revenue of $22.39 billion for the quarter, compared to the consensus estimate of $22.96 billion. Tesla had a return on equity of 4.89% and a net margin of 3.95%.The business's revenue was up 15.8% compared to the same quarter last year. During the same period last year, the business posted $0.27 EPS.

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla reported record Q2 deliveries of 480,126 vehicles, beating Wall Street expectations by a wide margin and reinforcing that its core EV business is stabilizing. Tesla expands robotaxi service to Orlando, Tampa ahead of earnings
• Positive Sentiment: Tesla expanded its robotaxi service into Orlando and Tampa and signaled further commercialization of its autonomy strategy, which some investors see as a step toward higher-margin software revenue. Tesla spins up robotaxi pilots in Orlando and Tampa ahead of Q2 earnings
• Positive Sentiment: New app code suggests Tesla is preparing support for its Optimus humanoid robot, keeping the long-term AI/robotics narrative in focus ahead of earnings. Tesla (TSLA) Quietly Takes Another Step Toward Launching Its Optimus Robot
• Neutral Sentiment: Options traders are pricing in a sizable post-earnings move, showing that expectations are elevated and the stock could swing sharply if margins, guidance, or autonomy updates disappoint or impress. Tesla (TSLA) Calls Surge as Traders Brace for an $87 Billion Earnings Move
• Neutral Sentiment: Broader markets are also under pressure from rising oil prices and a weaker Nasdaq, which is adding a risk-off backdrop ahead of Tesla’s results. Stock Market Today: Nasdaq 100 Falls as Crude Rallies to $88
• Negative Sentiment: Investors remain focused on Tesla’s thin margins, heavy AI and robotaxi spending, and the possibility of first-quarterly cash burn in over two years, which could pressure near-term profitability. Tesla cash burn to test investor faith in AI bets
• Negative Sentiment: Sentiment is also being weighed by skepticism around Elon Musk’s robotaxi promises, persistent valuation concerns, and legal/regulatory overhangs tied to autonomy. Tesla Stock Becomes Mag 7’s Worst Performer as 163x Forward Earnings Put Pressure on Elon Musk

Analyst Ratings Changes

TSLA has been the subject of a number of recent research reports. Tigress Financial assumed coverage on shares of Tesla in a report on Monday, April 27th. They issued a "buy" rating for the company. HSBC reaffirmed a "hold" rating on shares of Tesla in a research report on Monday, June 15th. Canaccord Genuity Group boosted their price objective on shares of Tesla from $420.00 to $450.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. BNP Paribas Exane cut shares of Tesla from a "hold" rating to an "underperform" rating in a research report on Friday, June 5th. Finally, President Capital raised their target price on shares of Tesla from $424.00 to $428.00 and gave the company a "buy" rating in a research note on Monday, April 27th. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, Tesla currently has an average rating of "Hold" and an average target price of $408.07.

Insider Activity at Tesla

In related news, 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 completion of the transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 3,000 shares of Tesla stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total value of $1,350,000.00. Following the completion of the sale, the chief financial officer directly owned 18,106 shares in the company, valued at $8,147,700. This represents a 14.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 32,015 shares of company stock valued at $12,383,640. Insiders own 19.90% of the company's stock.

Hedge Funds Weigh In On Tesla

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Networth Advisors LLC acquired a new stake in Tesla during the 4th quarter worth approximately $26,000. Davidson Capital Management Inc. raised its position in shares of Tesla by 79.4% during the 4th quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer's stock worth $27,000 after acquiring an additional 27 shares in the last quarter. Turning Point Benefit Group Inc. purchased a new stake in Tesla during the third quarter worth approximately $30,000. Prism Advisors Inc. acquired a new position in Tesla in the fourth quarter valued at approximately $30,000. Finally, Texas Capital Bancshares Inc TX acquired a new position in shares of Tesla in the 3rd quarter valued at $31,000. Institutional investors and hedge funds own 66.20% of the company's stock.

Tesla Stock Performance

The company has a current ratio of 2.04, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09. The firm's fifty day moving average price is $406.82 and its 200-day moving average price is $404.53. The firm has a market cap of $1.40 trillion, a price-to-earnings ratio of 343.13, a PEG ratio of 12.40 and a beta of 1.80.

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.

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