Tesla (NASDAQ:TSLA) Trading Down 9% Following Weak Earnings

Tesla, Inc. (NASDAQ:TSLA - Get Free Report)'s stock price was down 9% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $301.00 and last traded at $302.53. Approximately 65,680,401 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 107,491,375 shares. The stock had previously closed at $332.56.

The electric vehicle producer reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.03). The company had revenue of $22.50 billion for the quarter, compared to analyst estimates of $23.18 billion. Tesla had a net margin of 6.54% and a return on equity of 7.98%. Tesla's revenue for the quarter was down 11.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.52 EPS.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on TSLA shares. Raymond James Financial lowered shares of Tesla to an "outperform" rating in a report on Tuesday, April 22nd. BNP Paribas set a $137.00 price target on shares of Tesla and gave the stock an "underperform" rating in a research note on Wednesday, April 16th. Cantor Fitzgerald cut their price objective on Tesla from $425.00 to $355.00 and set an "overweight" rating for the company in a research report on Wednesday, April 23rd. Roth Mkm dropped their price target on shares of Tesla from $450.00 to $395.00 and set a "buy" rating for the company in a research note on Wednesday, April 23rd. Finally, Piper Sandler restated an "overweight" rating and issued a $400.00 price target on shares of Tesla in a report on Tuesday, June 10th. Ten equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $302.75.

Insiders Place Their Bets

In other Tesla news, CFO Vaibhav Taneja sold 2,000 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $300.00, for a total value of $600,000.00. Following the completion of the sale, the chief financial officer directly owned 5,924 shares of the company's stock, valued at $1,777,200. This trade represents a 25.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Ira Matthew Ehrenpreis sold 477,572 shares of the firm's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $357.30, for a total value of $170,636,475.60. Following the completion of the transaction, the director directly owned 855,394 shares of the company's stock, valued at $305,632,276.20. The trade was a 35.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 835,509 shares of company stock worth $279,420,485 in the last quarter. 20.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tesla

Large investors have recently added to or reduced their stakes in the business. Cherry Tree Wealth Management LLC increased its holdings in shares of Tesla by 86.3% in the first quarter. Cherry Tree Wealth Management LLC now owns 95 shares of the electric vehicle producer's stock worth $25,000 after buying an additional 44 shares during the period. First PREMIER Bank raised its holdings in Tesla by 79.2% during the first quarter. First PREMIER Bank now owns 95 shares of the electric vehicle producer's stock valued at $25,000 after acquiring an additional 42 shares during the period. Newton One Investments LLC increased its holdings in shares of Tesla by 250.0% in the first quarter. Newton One Investments LLC now owns 105 shares of the electric vehicle producer's stock worth $27,000 after purchasing an additional 75 shares during the last quarter. Arcadia Investment Management Corp MI bought a new stake in shares of Tesla in the first quarter worth about $27,000. Finally, True Wealth Design LLC boosted its position in shares of Tesla by 79.5% during the fourth quarter. True Wealth Design LLC now owns 70 shares of the electric vehicle producer's stock valued at $28,000 after buying an additional 31 shares during the period. Institutional investors own 66.20% of the company's stock.

Tesla Stock Up 3.5%

The company has a 50-day simple moving average of $324.70 and a 200-day simple moving average of $314.09. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.04 and a quick ratio of 1.54. The firm has a market cap of $1.02 trillion, a PE ratio of 182.69, a price-to-earnings-growth ratio of 12.00 and a beta of 2.39.

About Tesla

Tesla, Inc designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services.