Tesla (NASDAQ:TSLA) Stock Price Down 2.1% Following Weak Earnings

Key Points

• Tesla shares fell 2.1% after a disappointing earnings report, with the stock trading as low as $306.51 before recovering slightly. Trading volume was also above average.
• The company missed EPS expectations, reporting $0.33 per share versus the $0.50 consensus, even though revenue came in above estimates at $28.24 billion and rose 25.5% year over year.
• Investor concerns are centered on rising capital spending and negative free cash flow, along with uncertainty about when Tesla’s robotaxi and Optimus initiatives will meaningfully contribute to earnings.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report)'s share price fell 2.1% during trading on Friday following a dissappointing earnings announcement. The company traded as low as $306.51 and last traded at $313.03. 62,230,241 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 56,869,629 shares. The stock had previously closed at $319.69.

The electric vehicle producer reported $0.33 earnings per share (EPS) 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 analyst estimates of $26.42 billion. Tesla had a return on equity of 3.88% and a net margin of 3.67%.The company's revenue for the quarter was up 25.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.33 earnings per share.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla posted record Q2 revenue of $28.24 billion, up 25.5% year over year, and vehicle deliveries remained strong. Reuters: Elon Musk's Tesla posts cash burn as capex surges on AI, robotaxi push
• Positive Sentiment: Some investors are still buying the dip: ARK Invest and Cathie Wood added a large Tesla position after the post-earnings selloff, signaling long-term confidence in Tesla’s autonomy and AI story. Barron's: Cathie Wood's Ark Bought the Dip in Tesla Stock
• Neutral Sentiment: Management highlighted progress in robotaxi and Optimus, but provided limited near-term monetization detail, leaving the market uncertain about when these bets will contribute meaningfully to earnings. Benzinga: Tesla Could 'Eventually Drop a Bomb on Waymo'
• Neutral Sentiment: Analysts remain split: several cut price targets after the earnings miss and higher CapEx outlook, while others kept bullish ratings, suggesting valuation pressure may stay elevated even if long-term growth bulls remain engaged.
• Negative Sentiment: Adjusted EPS came in at $0.33 versus expectations near $0.50, and free cash flow turned negative as capex rose sharply, fueling concerns that Tesla is spending aggressively before its new initiatives generate returns. MarketWatch: Tesla sees a $200 billion wipeout as investors pan Musk's plan to spend 'as fast as we can'
• Negative Sentiment: Investors are also worried that Tesla’s autonomous-driving edge is lagging rivals like Waymo, while regulatory scrutiny around FSD and door-handle safety adds another overhang. Reuters: US auto safety regulator denies petition seeking Tesla door-release defect probe

Analysts Set New Price Targets

A number of research firms recently commented on TSLA. DZ Bank raised Tesla from a "sell" rating to a "hold" rating and set a $385.00 price objective on the stock in a research note on Friday, April 24th. Truist Financial set a $370.00 target price on shares of Tesla and gave the company a "hold" rating in a report on Thursday. Roth Capital reaffirmed a "buy" rating and set a $505.00 price target on shares of Tesla in a research note on Thursday. William Blair reiterated a "market perform" rating on shares of Tesla in a report on Thursday, July 2nd. Finally, Phillip Securities cut their price objective on shares of Tesla from $220.00 to $215.00 and set a "sell" rating for the company in a research report on Wednesday, May 13th. Twenty-one investment analysts have rated the stock with a Buy rating, twenty-one have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, Tesla presently has an average rating of "Hold" and an average price target of $404.95.

Insider Buying and Selling at Tesla

In related news, Director Kathleen Wilson-Thompson sold 26,409 shares of the stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $378.11, for a total transaction of $9,985,506.99. Following the transaction, the director directly owned 48,399 shares in the company, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Vaibhav Taneja sold 3,000 shares of the firm's stock in a transaction dated 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 approximately $8,147,700. The trade was 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. Insiders sold 32,015 shares of company stock valued at $12,383,640 over the last quarter. Insiders own 19.90% of the company's stock.

Institutional Investors Weigh In On Tesla

A number of institutional investors have recently bought and sold shares of the stock. Catalyst Capital Advisors LLC grew its stake in shares of Tesla by 43.2% during the 2nd quarter. Catalyst Capital Advisors LLC now owns 978 shares of the electric vehicle producer's stock valued at $411,000 after buying an additional 295 shares during the period. RiverPark Advisors LLC raised its position in shares of Tesla by 267.8% in the 2nd quarter. RiverPark Advisors LLC now owns 651 shares of the electric vehicle producer's stock worth $274,000 after buying an additional 474 shares during the period. Wagner Wealth Management LLC boosted its holdings in Tesla by 2.5% in the second quarter. Wagner Wealth Management LLC now owns 4,652 shares of the electric vehicle producer's stock valued at $1,957,000 after acquiring an additional 114 shares during the last quarter. Provenance Wealth Advisors LLC boosted its holdings in Tesla by 86.6% in the second quarter. Provenance Wealth Advisors LLC now owns 545 shares of the electric vehicle producer's stock valued at $229,000 after acquiring an additional 253 shares during the last quarter. Finally, Mizuho Markets Americas LLC grew its position in Tesla by 155.6% during the second quarter. Mizuho Markets Americas LLC now owns 472,800 shares of the electric vehicle producer's stock valued at $198,860,000 after acquiring an additional 287,800 shares during the period. 66.20% of the stock is currently owned by hedge funds and other institutional investors.

Tesla Price Performance

The company has a 50 day simple moving average of $402.92 and a 200 day simple moving average of $403.16. The company has a market capitalization of $1.18 trillion, a price-to-earnings ratio of 289.85, a price-to-earnings-growth ratio of 12.55 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.

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