Tesla (NASDAQ:TSLA) Shares Down 2.8% – Should You Sell?

Tesla, Inc. (NASDAQ:TSLA)’s share price fell 2.8% during trading on Friday . The stock traded as low as $359.47 and last traded at $361.83. 61,544,277 shares changed hands during mid-day trading, an increase of 0% from the average session volume of 61,305,594 shares. The stock had previously closed at $372.11.

Key Headlines Impacting Tesla

Here are the key news stories impacting Tesla this week:

• Positive Sentiment: Wedbush reaffirmed an “outperform” rating and a $600 price target, highlighting Bull-case conviction in Tesla’s AI/robotics and Terafab strategy. Benzinga
• Positive Sentiment: SpaceX IPO talk and potential favorable retail allocation (reports of up to ~30% retail) are fueling optimism that Musk’s broader asset value could indirectly support TSLA sentiment over time. Why Tesla Investors Should Care About SpaceX’s IPO
• Positive Sentiment: Product and infrastructure updates — Tesla’s new, cheaper Supercharger rollout and continued progress on Optimus/AI initiatives — underpin the long-term “physical AI” thesis that bulls cite. Tesla Touts Lower EV Delivery Estimate
• Neutral Sentiment: Tesla-compiled Q1 delivery consensus (around 365k vehicles) and the official Q1 deliveries report due next week are focal points — important data but already priced into today’s moves. Q1 delivery consensus
• Neutral Sentiment: Minor analyst estimate churn: Erste trimmed FY2026 EPS slightly while nudging FY2027 higher — signals caution but not a large earnings reset. MarketBeat – Analyst Notes
• Negative Sentiment: Delivery fears are pressuring the stock: several outlets note growing expectations for Q1 deliveries below prior forecasts and Tesla itself trimmed its 2026 delivery outlook to ~1.69M units. Tesla Cuts 2026 Delivery Outlook
• Negative Sentiment: Intensifying competition from BYD — record sales/profits and rapid dealer expansion (including Canada/Europe) are cited as taking share and pressuring Tesla’s China and international volumes. BYD competition
• Negative Sentiment: Brand perception, regulatory and execution concerns persist — reports on falling brand rankings, FSD probes, and commentary that “true believers” may be losing faith are weighing on sentiment. CNBC – investor confidence

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Phillip Securities reduced their price objective on shares of Tesla from $220.00 to $215.00 and set a “sell” rating on the stock in a report on Monday, February 2nd. William Blair reiterated a “market perform” rating on shares of Tesla in a research report on Friday, January 2nd. Glj Research restated a “sell” rating on shares of Tesla in a report on Thursday, March 12th. Bank of America began coverage on shares of Tesla in a research report on Wednesday, March 4th. They set a “buy” rating and a $460.00 price objective for the company. Finally, TD Cowen lifted their target price on shares of Tesla from $509.00 to $519.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Nineteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and nine have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $406.84.

Tesla Price Performance

The company has a market capitalization of $1.36 trillion, a PE ratio of 335.03, a price-to-earnings-growth ratio of 11.41 and a beta of 1.89. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.16 and a quick ratio of 1.77. The stock’s 50 day simple moving average is $409.72 and its 200-day simple moving average is $427.68.

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

Insider Buying and Selling at Tesla

In other news, Director James R. Murdoch sold 60,000 shares of the stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $445.40, for a total value of $26,724,000.00. Following the sale, the director directly owned 577,031 shares in the company, valued at approximately $257,009,607.40. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kathleen Wilson-Thompson sold 25,731 shares of the business’s stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $415.56, for a total value of $10,692,774.36. Following the transaction, the director directly owned 19,669 shares of the company’s stock, valued at $8,173,649.64. The trade was a 56.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 87,995 shares of company stock valued at $38,315,650 in the last 90 days. Company insiders own 19.90% of the company’s stock.

Institutional Investors Weigh In On Tesla

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