Tesla (NASDAQ:TSLA) Shares Down 2.2% – Here’s Why

Tesla, Inc. (NASDAQ:TSLA)’s share price traded down 2.2% on Thursday . The company traded as low as $387.53 and last traded at $397.21. 71,010,238 shares changed hands during mid-day trading, an increase of 11% from the average session volume of 63,942,801 shares. The stock had previously closed at $406.01.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Tesla is hiring to support Elon Musk’s expanded U.S. solar strategy, signaling capital allocation and execution toward scaling rooftop and cell production — a clear revenue diversification play beyond cars. Tesla executives say hiring is ramping up to support Musk’s expanded solar strategy
• Positive Sentiment: Tesla is scouting U.S. sites and pushing to expand solar cell manufacturing with a 100?GW ambition tied to AI/data center power needs — a strategic commitment that could drive long-term revenue and vertical integration. Tesla Eyes US Solar Cell Expansion, Musk Targets 100-Gigawatt Power Push For AI Data Centers
• Positive Sentiment: Tesla launched a vehicle?to?grid pilot in Texas for Cybertruck owners to earn bill credits by sending power back to the grid — commercializing vehicle energy services and improving EV ownership economics. Tesla Lets Cybertruck Owners Earn Bill Credits by Powering the Grid
• Positive Sentiment: Reports show Tesla training AI systems in China and promoting its Optimus robotics/robotaxi initiatives — continued investment in “physical AI” supports the higher?margin, optionality narrative that bulls cite. Tesla is training its AI technology in China, local media reports
• Neutral Sentiment: Market commentary frames today’s move as a tech?sector rebound after a volatile week — momentum-driven buying can lift TSLA short-term even if fundamentals remain mixed. Tesla’s stock rallies to end a rough week
• Neutral Sentiment: High?profile buys (ARK/Cathie Wood) and trademark filings (Roadster hype) add retail and thematic interest but are speculative near-term catalysts. Cathie Wood Doubles Down On Tesla With $14.5 Million Stock Purchase, Ark Invest Pounces On AMD Dip
• Negative Sentiment: Legal risk: a judge indicated Tesla/Musk likely can’t escape a ‘Blade Runner 2049’ lawsuit — ongoing litigation creates headline risk and potential costs. Tesla, Musk likely can’t escape ‘Blade Runner 2049’ lawsuit, judge says
• Negative Sentiment: Competitive pressure: Volkswagen overtook Tesla as Europe’s top EV seller in 2025 and BYD is expanding in key markets — market?share erosion and intensifying competition could weigh on auto margins. Volkswagen overtook Tesla as Europe’s top EV seller in 2025
• Negative Sentiment: Valuation and sales concerns persist: recent selloffs were driven by a near?400–plus P/E, mixed sales headlines, and analyst debate over the car business vs. “physical AI” optionality. That makes TSLA sensitive to sentiment shifts. BLBD vs. TSLA: Which Stock Is the Better Value Option?

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Bank of America increased their price target on shares of Tesla from $341.00 to $471.00 and gave the company a “neutral” rating in a research report on Wednesday, October 29th. CICC Research boosted their price target on Tesla from $450.00 to $500.00 and gave the company an “outperform” rating in a research note on Thursday, December 18th. Dbs Bank upgraded shares of Tesla to a “hold” rating in a research note on Wednesday, November 5th. HSBC reaffirmed a “reduce” rating on shares of Tesla in a report on Monday, November 17th. Finally, New Street Research upped their price objective on shares of Tesla from $520.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, January 6th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and nine have issued a Sell rating to the company’s stock. According to MarketBeat.com, Tesla currently has an average rating of “Hold” and a consensus price target of $403.92.

Tesla Stock Performance

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 firm has a market capitalization of $1.54 trillion, a PE ratio of 380.66, a price-to-earnings-growth ratio of 13.30 and a beta of 1.86. The firm has a 50-day moving average price of $446.45 and a 200 day moving average price of $410.61.

Tesla (NASDAQ:TSLA) last released its earnings results on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.05. The firm had revenue of $24.90 billion for the quarter, compared to analyst estimates of $24.75 billion. Tesla had a net margin of 4.00% and a return on equity of 4.86%. The business’s quarterly revenue was down 3.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. Research analysts expect that Tesla, Inc. will post 2.56 earnings per share for the current year.

Insider Transactions at Tesla

In related news, Director James R. Murdoch sold 60,000 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $445.40, for a total value of $26,724,000.00. Following the completion of the sale, the director owned 577,031 shares in the company, valued at $257,009,607.40. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Kimbal Musk sold 56,820 shares of the company’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $450.66, for a total transaction of $25,606,501.20. Following the transaction, the director owned 1,391,615 shares in the company, valued at $627,145,215.90. The trade was a 3.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 119,457 shares of company stock worth $53,501,145 over the last ninety days. 19.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Tesla

Several large investors have recently made changes to their positions in TSLA. Planning Alternatives Ltd. ADV increased its stake in Tesla by 30.2% in the 4th quarter. Planning Alternatives Ltd. ADV now owns 2,224 shares of the electric vehicle producer’s stock valued at $1,000,000 after buying an additional 516 shares during the period. CFO4Life Group LLC lifted its stake in shares of Tesla by 1.6% in the 4th quarter. CFO4Life Group LLC now owns 7,095 shares of the electric vehicle producer’s stock valued at $3,191,000 after purchasing an additional 114 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in Tesla by 4.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 81,124 shares of the electric vehicle producer’s stock valued at $36,483,000 after buying an additional 3,608 shares in the last quarter. New Millennium Group LLC lifted its position in shares of Tesla by 89.6% in the fourth quarter. New Millennium Group LLC now owns 563 shares of the electric vehicle producer’s stock worth $253,000 after buying an additional 266 shares during the last quarter. Finally, Americana Partners LLC increased its holdings in shares of Tesla by 61.9% during the 4th quarter. Americana Partners LLC now owns 5,406 shares of the electric vehicle producer’s stock valued at $2,431,000 after acquiring an additional 2,067 shares during the last quarter. Institutional investors and hedge funds own 66.20% of the company’s stock.

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.