Tesla (NASDAQ:TSLA) Stock Price Down 2.1% Following Weak Earnings

Posted by Francis Steltz on Jul 24th, 2026

Tesla, Inc. (NASDAQ:TSLA – Get Free Report) shares were down 2.1% during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $306.51 and last traded at $313.03. Approximately 62,230,241 shares traded hands during mid-day trading, an increase of 9% from the average daily volume of 56,869,629 shares. The stock had previously closed at $319.69.

The electric vehicle producer reported $0.33 EPS for the quarter, missing the consensus estimate of $0.50 by ($0.17). The business had revenue of $28.24 billion during the quarter, compared to analysts’ expectations of $26.42 billion. Tesla had a net margin of 3.67% and a return on equity of 3.88%. The company’s quarterly revenue was up 25.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.33 EPS.

Tesla News Summary

Here are the key news stories impacting Tesla this week:

Positive Sentiment: Tesla posted record Q2 revenue of $28.24 billion, up 25.5% year over year, and vehicle deliveries remained strong. Reuters: Elon Musk’s Tesla posts cash burn as capex surges on AI, robotaxi push
Positive Sentiment: Some investors are still buying the dip: ARK Invest and Cathie Wood added a large Tesla position after the post-earnings selloff, signaling long-term confidence in Tesla’s autonomy and AI story. Barron’s: Cathie Wood’s Ark Bought the Dip in Tesla Stock
Neutral Sentiment: Management highlighted progress in robotaxi and Optimus, but provided limited near-term monetization detail, leaving the market uncertain about when these bets will contribute meaningfully to earnings. Benzinga: Tesla Could ‘Eventually Drop a Bomb on Waymo’
Neutral Sentiment: Analysts remain split: several cut price targets after the earnings miss and higher CapEx outlook, while others kept bullish ratings, suggesting valuation pressure may stay elevated even if long-term growth bulls remain engaged.
Negative Sentiment: Adjusted EPS came in at $0.33 versus expectations near $0.50, and free cash flow turned negative as capex rose sharply, fueling concerns that Tesla is spending aggressively before its new initiatives generate returns. MarketWatch: Tesla sees a $200 billion wipeout as investors pan Musk’s plan to spend ‘as fast as we can’
Negative Sentiment: Investors are also worried that Tesla’s autonomous-driving edge is lagging rivals like Waymo, while regulatory scrutiny around FSD and door-handle safety adds another overhang. Reuters: US auto safety regulator denies petition seeking Tesla door-release defect probe

Wall Street Analyst Weigh In

TSLA has been the subject of a number of research reports. William Blair reaffirmed a “market perform” rating on shares of Tesla in a research report on Thursday, July 2nd. The Goldman Sachs Group assumed coverage on Tesla in a research note on Friday, June 5th. They set a “buy” rating on the stock. Glj Research reaffirmed a “sell” rating on shares of Tesla in a research report on Tuesday. Wells Fargo & Company reiterated an “underweight” rating and issued a $130.00 target price (up from $125.00) on shares of Tesla in a research note on Tuesday, July 14th. Finally, Robert W. Baird dropped their target price on Tesla from $538.00 to $522.00 and set an “outperform” rating on the stock in a report on Friday, April 24th. Twenty-one analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $404.95.

Check Out Our Latest Stock Report on Tesla

Insiders Place Their Bets

In other 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 sale, the chief financial officer directly owned 18,106 shares of the company’s stock, valued at approximately $8,147,700. The trade was a 14.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 business’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $378.11, for a total value of $9,985,506.99. Following the completion of the transaction, the director owned 48,399 shares in the company, valued at approximately $18,300,145.89. This trade represents a 35.30% decrease in their position. 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. Insiders sold a total of 32,015 shares of company stock worth $12,383,640 in the last quarter. 19.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Tesla

Institutional investors have recently made changes to their positions in the business. Crestwood Advisors Group LLC raised its holdings in Tesla by 34.7% during the fourth quarter. Crestwood Advisors Group LLC now owns 19,567 shares of the electric vehicle producer’s stock worth $8,799,000 after purchasing an additional 5,039 shares in the last quarter. Calamos Wealth Management LLC boosted its stake in Tesla by 5.9% during the 4th quarter. Calamos Wealth Management LLC now owns 41,907 shares of the electric vehicle producer’s stock valued at $18,846,000 after purchasing an additional 2,341 shares in the last quarter. Private Capital Advisors Inc. increased its position in shares of Tesla by 139.3% during the 4th quarter. Private Capital Advisors Inc. now owns 21,331 shares of the electric vehicle producer’s stock valued at $9,593,000 after purchasing an additional 12,417 shares during the period. Wealthquest Corp bought a new stake in shares of Tesla in the 4th quarter worth $1,035,000. Finally, Knights of Columbus Asset Advisors LLC lifted its holdings in shares of Tesla by 34.8% in the fourth quarter. Knights of Columbus Asset Advisors LLC now owns 64,481 shares of the electric vehicle producer’s stock valued at $28,998,000 after buying an additional 16,652 shares during the period. 66.20% of the stock is owned by institutional investors and hedge funds.

Tesla Stock Performance

The company has a fifty day moving average price of $402.92 and a two-hundred day moving average price of $403.16. The firm has a market cap of $1.18 trillion, a price-to-earnings ratio of 289.85, a price-to-earnings-growth ratio of 12.55 and a beta of 1.80. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.04 and a quick ratio of 1.62.

About Tesla

(Get Free Report)

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.