Tesla (NASDAQ:TSLA) Stock Price Down 3.8% – Time to Sell?

Tesla, Inc. (NASDAQ:TSLA)’s share price dropped 3.8% during mid-day trading on Wednesday . The company traded as low as $399.18 and last traded at $406.01. Approximately 73,499,030 shares were traded during trading, an increase of 15% from the average daily volume of 63,655,023 shares. The stock had previously closed at $421.96.

Trending Headlines about Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Q4 results and earnings commentary beat expectations, reinforcing confidence in margins and energy deployments—supporting the case that Tesla can still execute near-term fundamentals. QuiverQuant: Q4 Opinions
• Positive Sentiment: China-made vehicle wholesale sales rose ~9% year-over-year in January, extending momentum in Tesla’s largest market — a tangible tailwind for revenue while other regions weaken. Reuters: China sales rise
• Positive Sentiment: Tesla’s $2 billion investment in xAI signals deeper AI integration (and potential tech synergies) that bulls view as validation of the “physical AI” growth narrative. Barchart: $2B xAI investment
• Neutral Sentiment: Speculation about SpaceX–xAI–Tesla tie‑ups continues to swirl; potential upside exists but timing and concrete benefits for TSLA remain uncertain. This fuels volatility rather than a clear directional catalyst. TipRanks: Merger speculation
• Neutral Sentiment: Wall Street remains split: some firms reiterate bullish long-term forecasts while others (and research houses) warn this is a “catalyst-rich” but execution‑dependent year — keeping trading choppy. TipRanks: Wolfe cautious
• Negative Sentiment: Valuation risk is acute — post‑earnings P/E has been highlighted near ~400; at that multiple any small disappointment can trigger outsized selling. That elevated multiple is a primary reason for today’s weakness. MarketBeat: P/E hits 400
• Negative Sentiment: Fresh analyst pressure and downgrades (including a recent lower price target) are weighing on sentiment and triggering short‑term selling. AmericanBankingNews: Analyst downgrade
• Negative Sentiment: Competitive threats: Waymo’s large new funding round and accelerating robotaxi rollout increase the risk to Tesla’s autonomy/robotaxi ambitions, pressuring the narrative that justifies TSLA’s premium. 247WallSt: Waymo $16B

Analysts Set New Price Targets

Several research firms have recently commented on TSLA. President Capital dropped their target price on shares of Tesla from $517.00 to $500.00 and set a “buy” rating for the company in a research report on Friday, January 30th. UBS Group raised their price objective on shares of Tesla from $307.00 to $352.00 and gave the stock a “sell” rating in a report on Thursday, January 29th. Stifel Nicolaus set a $508.00 target price on Tesla in a report on Thursday, January 29th. CICC Research increased their target price on Tesla from $450.00 to $500.00 and gave the stock an “outperform” rating in a research report on Thursday, December 18th. Finally, DZ Bank restated a “sell” rating on shares of Tesla in a research report on Thursday, January 29th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and nine have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $403.92.

Tesla Stock Performance

The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.77 and a current ratio of 2.16. The stock has a market capitalization of $1.52 trillion, a P/E ratio of 375.94, a PEG ratio of 7.76 and a beta of 1.86. The business has a 50-day moving average price of $447.83 and a 200 day moving average price of $410.15.

Tesla (NASDAQ:TSLA) last announced its quarterly earnings data on Wednesday, January 28th. The electric vehicle producer reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.05. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The business had revenue of $24.90 billion during the quarter, compared to analysts’ expectations of $24.75 billion. During the same quarter in the previous year, the business earned $0.73 earnings per share. The firm’s quarterly revenue was down 3.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Tesla, Inc. will post 2.56 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Vaibhav Taneja sold 2,637 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $443.93, for a total transaction of $1,170,643.41. Following the sale, the chief financial officer directly owned 13,757 shares of the company’s stock, valued at approximately $6,107,145.01. This represents a 16.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 transaction of $26,724,000.00. Following the sale, the director owned 577,031 shares of the company’s stock, valued at approximately $257,009,607.40. This represents a 9.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 119,457 shares of company stock worth $53,501,145 in the last quarter. Corporate insiders own 19.90% of the company’s stock.

Institutional Trading of Tesla

Institutional investors and hedge funds have recently modified their holdings of the business. Relyea Zuckerberg Hanson LLC lifted its stake in Tesla by 0.4% during the 3rd quarter. Relyea Zuckerberg Hanson LLC now owns 6,558 shares of the electric vehicle producer’s stock valued at $2,916,000 after acquiring an additional 23 shares during the period. Equita Financial Network Inc. lifted its position in Tesla by 2.8% during the third quarter. Equita Financial Network Inc. now owns 855 shares of the electric vehicle producer’s stock valued at $380,000 after purchasing an additional 23 shares during the period. VanderPol Investments L.L.C. boosted its holdings in Tesla by 2.2% in the third quarter. VanderPol Investments L.L.C. now owns 1,070 shares of the electric vehicle producer’s stock worth $464,000 after purchasing an additional 23 shares during the last quarter. Resonant Capital Advisors LLC grew its position in Tesla by 0.3% in the 3rd quarter. Resonant Capital Advisors LLC now owns 8,577 shares of the electric vehicle producer’s stock worth $3,814,000 after purchasing an additional 23 shares during the period. Finally, Cloud Capital Management LLC raised its stake in Tesla by 1.1% during the 3rd quarter. Cloud Capital Management LLC now owns 2,076 shares of the electric vehicle producer’s stock valued at $923,000 after buying an additional 23 shares during the last quarter. Institutional investors 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.