Tesla (NASDAQ:TSLA) Stock Price Down 5.8% - Here's What Happened

Key Points

• Tesla shares fell 5.8% on Tuesday, dropping to as low as $379.06 before closing near $381.61, with trading volume below its daily average.
• Negative headlines may be weighing on the stock, including a new U.S. safety investigation into a fatal Texas crash involving a Tesla Model 3, which renews scrutiny of Autopilot and Full Self-Driving systems.
• There were also some offsetting positives, such as a new European battery-storage partnership with NatPower and a rebound in Tesla’s European registrations, which more than doubled in May.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report) shares fell 5.8% during trading on Tuesday . The stock traded as low as $379.06 and last traded at $381.61. 49,651,461 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 59,327,305 shares. The stock had previously closed at $405.05.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla and NatPower announced the first phase of a multi-year European battery-storage partnership covering more than 25 GWh across Italy and the U.K., which could support Tesla’s energy-storage growth and improve its non-auto revenue story. NatPower, Tesla reach deal on first phase of $5 billion battery storage plan
• Positive Sentiment: Tesla’s European registrations more than doubled in May, signaling a rebound in demand in a key market even as competition remains intense. Tesla's European Sales More Than Doubled In May, But Chinese Rivals Continue Explosive Growth
• Positive Sentiment: Finland may approve Tesla’s supervised self-driving software before the EU-wide decision later this year, which could help Tesla expand FSD adoption in Europe. Finland may approve Tesla's supervised self-driving software before EU vote
• Positive Sentiment: Analysts are looking for another solid quarter of deliveries, which would reinforce the view that Tesla’s core EV business is stabilizing after a difficult stretch. Here’s What UBS and Baird Expect from Tesla’s Q2 Deliveries
• Neutral Sentiment: Jefferies reiterated a hold-style view and raised its price target, reflecting mixed but not outright bearish sentiment from Wall Street. Jefferies adjusts price target on Tesla to 375 from 350, maintains hold rating
• Negative Sentiment: U.S. safety regulators opened a new investigation into a fatal Texas crash involving a Tesla Model 3, renewing scrutiny over Autopilot/FSD and raising recall or liability concerns. Tesla faces federal probe after Model 3 slams into Texas home, killing 76-year-old
• Negative Sentiment: Brokerage commentary tied Tesla’s valuation to SpaceX merger speculation, which some analysts say could create a “proxy” stock problem and pressure Tesla’s standalone valuation. EV maker Lucid to lay off about 18% of US workforce

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Tesla in a research note on Friday, April 24th. Royal Bank Of Canada reissued a "buy" rating on shares of Tesla in a report on Monday, April 27th. Mizuho reduced their price objective on shares of Tesla from $540.00 to $480.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Oppenheimer reaffirmed a "market perform" rating on shares of Tesla in a report on Thursday, June 11th. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Tesla in a research note on Friday, June 5th. They set a "buy" rating for the company. Twenty-one investment analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $405.06.

Tesla Trading Down 5.8%

The company has a 50 day moving average of $404.52 and a 200 day moving average of $414.98. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.04. The stock has a market capitalization of $1.43 trillion, a price-to-earnings ratio of 350.10, a P/E/G ratio of 16.01 and a beta of 1.80.

Tesla (NASDAQ:TSLA - Get Free Report) last announced its earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02. The company had revenue of $22.39 billion for the quarter, compared to analysts' expectations of $22.96 billion. Tesla had a net margin of 3.95% and a return on equity of 4.89%. The firm's quarterly revenue was up 15.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.27 EPS. On average, research analysts predict that Tesla, Inc. will post 1.19 EPS for the current fiscal year.

Insider Transactions 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 sale, the director owned 48,399 shares of the company's stock, valued at approximately $18,300,145.89. This represents a 35.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $450.00, for a total transaction of $1,350,000.00. Following the completion of the transaction, the chief financial officer directly owned 18,106 shares in the company, valued at $8,147,700. This trade represents a 14.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 57,824 shares of company stock worth $21,657,588 over the last 90 days. 19.90% of the stock is currently owned by company insiders.

Institutional Trading of Tesla

A number of hedge funds and other institutional investors have recently modified their holdings of TSLA. Networth Advisors LLC purchased a new stake in shares of Tesla in the 4th quarter valued at approximately $26,000. Chapman Financial Group LLC acquired a new position in Tesla in the second quarter valued at approximately $26,000. Davidson Capital Management Inc. lifted its holdings in Tesla by 79.4% in the fourth quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer's stock valued at $27,000 after acquiring an additional 27 shares during the last quarter. Friedenthal Financial grew its position in Tesla by 66.7% in the first quarter. Friedenthal Financial now owns 75 shares of the electric vehicle producer's stock worth $28,000 after acquiring an additional 30 shares during the period. Finally, Prism Advisors Inc. acquired a new stake in Tesla during the fourth quarter worth $30,000. 66.20% of the stock is owned by institutional investors and hedge funds.

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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