Tesla (NASDAQ:TSLA) Shares Down 1.6% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA)’s share price fell 1.6% on Wednesday . The company traded as low as $392.31 and last traded at $392.78. 50,309,197 shares were traded during trading, a decline of 17% from the average session volume of 60,762,758 shares. The stock had previously closed at $399.27.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: U.S. battery deal — Tesla and LG Energy Solution confirmed a $4.3B agreement to build an LFP cell plant in Michigan to supply Megapack 3 (reduces China reliance and supports energy?storage revenue). US government confirms Tesla and LG Energy Solution’s $4.3 billion battery deal
• Positive Sentiment: Supply scaling for Tesla chips — Samsung says it will begin volume production of Tesla’s chips in late 2027, easing concerns about Tesla’s ability to produce at scale for AI/robotaxi demand. Samsung Elec plans to produce Tesla chips starting late 2027
• Positive Sentiment: Model Y momentum — Tesla’s Model Y remains the world’s best?selling car for a third straight year, supporting recurring demand and pricing power for the core product line. Tesla Model Y Emerges As World’s Best-Selling Car For Third Year Despite Sales Decline
• Neutral Sentiment: Terafab timeline and scale — Elon Musk has pushed the Terafab AI?chip project forward (launch teased for March 21); investors view the tech as strategically important but costly and execution?intensive. Dear Tesla Stock Fans, Mark Your Calendars for March 21
• Negative Sentiment: Autonomy competition ramps — Nvidia, Lucid and Uber are building a modular AI fleet stack and multiple OEMs are adopting Nvidia DRIVE, challenging Tesla’s full?stack robotaxi moat and pressuring future FSD value. Forget Tesla — Nvidia And Lucid Are Quietly Building Uber’s AI Fleet
• Negative Sentiment: Nvidia ecosystem threat — Coverage highlights a growing “Tesla challenger army” as Nvidia signs DRIVE partners (Uber, BYD, Geely), which could erode Tesla’s autonomy premium. A Global Tesla Challenger Army Is Forming — And Nvidia Is Its Brain
• Negative Sentiment: Regulatory hit to sales — Tesla is losing its direct?sales advantage in Washington state, which could slightly raise distribution costs and complicate retail dynamics. Tesla Stock (NASDAQ:TSLA) Slips as Tesla Loses Direct Sales Advantage in Washington State
• Negative Sentiment: Product competition — BMW unveiled a 440?mile i3 sedan positioned to compete with Tesla at a lower price point, signaling intensifying EV competition across segments. BMW (BAMXF) Stock — Electric i3 Debuts With 440-Mile Range to Challenge Tesla
• Negative Sentiment: Autonomy skepticism — Wall?street voices (Ross Gerber and others) warn Tesla’s current fleet won’t achieve full autonomy soon, keeping downside risk on FSD monetization. Ross Gerber Says Tesla’s Current Vehicles Won’t Achieve Autonomy—Gary Black Points To Nvidia GTC

Analyst Upgrades and Downgrades

TSLA has been the topic of several recent research reports. Tigress Financial initiated coverage on Tesla in a report on Thursday, February 12th. They set a “buy” rating and a $550.00 price target on the stock. Wells Fargo & Company cut their target price on shares of Tesla from $130.00 to $125.00 and set an “underweight” rating on the stock in a research note on Thursday, January 29th. Mizuho set a $540.00 price target on shares of Tesla and gave the stock an “outperform” rating in a research note on Thursday, January 29th. President Capital dropped their price objective on shares of Tesla from $517.00 to $500.00 and set a “buy” rating on the stock in a research report on Friday, January 30th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Tesla from $500.00 to $480.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and nine have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $406.84.

Tesla Price Performance

The stock has a market capitalization of $1.47 trillion, a price-to-earnings ratio of 363.75, a P/E/G ratio of 11.70 and a beta of 1.89. The company has a quick ratio of 1.77, a current ratio of 2.16 and a debt-to-equity ratio of 0.08. The stock has a fifty day moving average of $418.18 and a 200-day moving average of $426.83.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.05. The business had revenue of $24.90 billion during the quarter, compared to the consensus estimate of $24.75 billion. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The company’s revenue was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.73 EPS. On average, equities research analysts predict that Tesla, Inc. will post 2.56 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director James R. Murdoch sold 60,000 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $445.40, for a total transaction of $26,724,000.00. Following the transaction, the director owned 577,031 shares in the company, valued at $257,009,607.40. This trade represents a 9.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Vaibhav Taneja sold 2,264 shares of the business’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $397.03, for a total value of $898,875.92. Following the completion of the sale, the chief financial officer owned 18,106 shares of the company’s stock, valued at approximately $7,188,625.18. This represents a 11.11% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 87,995 shares of company stock valued at $38,315,650. 19.90% of the stock is currently owned by insiders.

Institutional Trading of Tesla

Large investors have recently bought and sold shares of the business. Networth Advisors LLC acquired a new position in Tesla in the 4th quarter valued at about $26,000. Chapman Financial Group LLC purchased a new stake in shares of Tesla during the second quarter worth approximately $26,000. Davidson Capital Management Inc. lifted its holdings in shares of Tesla by 79.4% during the fourth quarter. Davidson Capital Management Inc. now owns 61 shares of the electric vehicle producer’s stock worth $27,000 after purchasing an additional 27 shares during the period. Manning & Napier Advisors LLC acquired a new position in Tesla in the 3rd quarter valued at $29,000. Finally, CoreFirst Bank & Trust purchased a new position in Tesla during the 2nd quarter worth $30,000. Institutional investors and hedge funds own 66.20% of the company’s stock.

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.