Tesla (NASDAQ:TSLA) Trading Down 4.6% - Should You Sell?

Key Points

• Tesla shares fell 4.6% on Monday, trading as low as $415.43 amid lighter-than-average volume, after closing at $435.79 previously.
• Recent news was mixed, with positive signs of a European demand recovery in May registrations, but also concerns about competition from OpenAI in robotics, China EV rivals, and speculation about a potentially value-destroying SpaceX-Tesla merger.
• Analyst sentiment remains split: Tesla has several buy ratings and high price targets, but the broader consensus is still Hold with a MarketBeat target of $395.20; the company also reported an earnings beat last quarter, though revenue came in below expectations.

Tesla, Inc. (NASDAQ:TSLA - Get Free Report)'s stock price was down 4.6% on Monday . The company traded as low as $415.43 and last traded at $415.88. Approximately 43,701,863 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 60,895,859 shares. The stock had previously closed at $435.79.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla saw strong signs of a European recovery, with May registrations jumping sharply in several markets, including a more-than-quadruple increase in Portugal and a 112.8% sales surge in Spain, which supports the long-term demand story. Reuters: Tesla May registrations jump in several European markets as recovery continues
• Positive Sentiment: Reuters also reported that Tesla registrations rose in multiple European markets, reinforcing signs that demand is improving outside China and the U.S. Reuters: Tesla May registrations jump in several European markets as recovery continues
• Neutral Sentiment: Tesla backed away from ending its graphite supply agreement with Syrah Resources after the supplier made progress on qualification work, reducing near-term supply-chain uncertainty but not changing the core growth outlook. Reuters: Tesla withdraws termination notice on graphite supply deal with Australia's Syrah
• Negative Sentiment: Shares fell after OpenAI announced a robotics initiative, intensifying concerns that Tesla’s Optimus robot push will face a stronger AI competitor. TipRanks: Tesla Stock (TSLA) Falls on Robo Attack from Nvidia and OpenAI
• Negative Sentiment: Investors are also weighing reports that SpaceX could eventually be merged with Tesla, with several commentators arguing the idea could be value-destructive and add dilution risk. TipRanks: ‘Makes No Sense’: Top Investor Blasts Potential SpaceX and Tesla Merger as Value Destroying
• Negative Sentiment: China competition remains a drag on sentiment, with Nio’s strong May delivery report and broader BYD strength highlighting intensifying pressure in the EV market. 247WallSt: NIO Soars 7% on Blowout May Deliveries Up 62%, Tesla Sinks 3% as China EV Battle Intensifies

Analysts Set New Price Targets

A number of analysts recently weighed in on TSLA shares. Royal Bank Of Canada reaffirmed a "buy" rating on shares of Tesla in a research note on Monday, April 27th. Canaccord Genuity Group upped 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. Bank of America started coverage on shares of Tesla in a research note on Wednesday, March 4th. They issued a "buy" rating and a $460.00 price objective for the company. Phillip Securities lowered their price objective on shares of Tesla from $220.00 to $215.00 and set a "sell" rating for the company in a research note on Wednesday, May 13th. Finally, Wedbush reissued an "outperform" rating and set a $600.00 price target on shares of Tesla in a research report on Tuesday, April 21st. Nineteen investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, Tesla has a consensus rating of "Hold" and a consensus target price of $395.20.

Tesla Stock Down 4.6%

The stock has a market capitalization of $1.56 trillion, a PE ratio of 381.54, a price-to-earnings-growth ratio of 17.21 and a beta of 1.80. 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 company's 50-day moving average is $391.84 and its 200 day moving average is $416.20.

Tesla (NASDAQ:TSLA - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The electric vehicle producer reported $0.41 EPS for the quarter, topping analysts' consensus estimates of $0.39 by $0.02. Tesla had a return on equity of 4.89% and a net margin of 3.95%.The company had revenue of $22.39 billion during the quarter, compared to analysts' expectations of $22.96 billion. During the same quarter in the previous year, the firm posted $0.27 EPS. The firm's revenue was up 15.8% compared to the same quarter last year. As a group, analysts anticipate that Tesla, Inc. will post 1.2 EPS for the current year.

Insider Transactions at Tesla

In other Tesla news, CFO Vaibhav Taneja sold 3,000 shares of Tesla stock in a transaction dated 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 sale, the chief financial officer owned 18,106 shares of the company's stock, valued at approximately $8,147,700. The trade was a 14.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kathleen Wilson-Thompson sold 26,409 shares of the firm's stock in a transaction that occurred on 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 of the company's stock, valued at $18,300,145.89. This represents a 35.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 57,482 shares of company stock valued at $21,508,331. 19.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Tesla

A number of institutional investors have recently bought and sold shares of TSLA. PFS Partners LLC grew its stake in shares of Tesla by 4.2% during the 4th quarter. PFS Partners LLC now owns 590 shares of the electric vehicle producer's stock worth $265,000 after purchasing an additional 24 shares during the period. Presidio Capital Management LLC grew its stake in shares of Tesla by 0.6% during the 3rd quarter. Presidio Capital Management LLC now owns 3,996 shares of the electric vehicle producer's stock worth $1,777,000 after purchasing an additional 25 shares during the period. Journey Advisory Group LLC grew its stake in shares of Tesla by 0.7% during the 3rd quarter. Journey Advisory Group LLC now owns 3,414 shares of the electric vehicle producer's stock worth $1,518,000 after purchasing an additional 25 shares during the period. Boltwood Capital Management grew its stake in shares of Tesla by 1.2% during the 4th quarter. Boltwood Capital Management now owns 2,120 shares of the electric vehicle producer's stock worth $953,000 after purchasing an additional 25 shares during the period. Finally, Woodmont Investment Counsel LLC grew its stake in Tesla by 1.2% in the 4th quarter. Woodmont Investment Counsel LLC now owns 2,124 shares of the electric vehicle producer's stock valued at $955,000 after acquiring an additional 25 shares during the period. 66.20% of the stock is owned by hedge funds and other institutional investors.

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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