Tesla (TSLA) Stock Declines 7% Following Four-Day Institutional Selling

TLDR

• Tesla shares dropped 6.6% to $401.99 on Thursday with volume jumping 17% above the daily average
• ARK Invest sold Tesla stock for four straight sessions through November 13, raising questions about near-term outlook
• The company beat Q3 earnings with $0.50 EPS versus $0.48 consensus and $28.10 billion revenue versus $24.98 billion expected
• Analysts rate Tesla a “Hold” with an average price target of $391.08, ranging from $175 to $509
• Tesla trades at a $1.34 trillion market cap with a price-to-earnings ratio of 268

Tesla stock fell 6.6% during Thursday’s session, closing at $401.99 after opening at $430.60. Trading volume surged to 117.6 million shares, up 17% from the typical daily average.

Tesla, Inc., TSLA

The decline pushed shares below a critical technical level. The stock now trades beneath its 50-day moving average of $425.40, which had provided support in recent weeks.

Tesla has traded between $214.25 and $488.54 over the past 52 weeks. Current prices sit roughly 12% below the yearly high reached earlier in 2025.

ARK Invest Trims Position Despite Long-Term Bullish View

Cathie Wood’s ARK Invest sold Tesla shares for four consecutive trading sessions through November 13. This represents one of the longest sustained selling periods from the prominent Tesla bull.

Tesla remains ARK’s largest holding, representing 11.96% of the ARK Innovation ETF and 9.69% of the ARK Next Generation Internet ETF. The firm maintains public price targets above $2,600 by 2029.

The recent selling suggests either profit-taking or caution about short-term headwinds. Tesla faces mounting competition from Chinese electric vehicle manufacturers and signs of slowing demand growth.

Insider activity has mirrored this trend. CFO Vaibhav Taneja sold 2,606 shares in September for $918,302. Director James R. Murdoch unloaded 120,000 shares in August for $42 million.

Third Quarter Results Beat Estimates

Tesla reported third-quarter earnings on October 23 that topped Wall Street forecasts. The electric vehicle maker posted $0.50 earnings per share, beating the $0.48 consensus by two cents.

Revenue reached $28.10 billion, exceeding analyst estimates of $24.98 billion. This marked an 11.6% increase from the same quarter in 2024. The company maintained a net margin of 5.51% and return on equity of 6.61%.

Despite beating estimates, earnings revealed margin compression from aggressive price cuts. Tesla has reduced prices to defend market share, pressuring profitability metrics.

The company’s valuation remains elevated with a price-to-earnings ratio of 267.99. Tesla’s market capitalization stands at $1.34 trillion.

Analyst Ratings Show Wide Divergence

Wall Street analysts remain split on Tesla’s prospects. The stock carries a consensus “Hold” rating with an average price target of $391.08.

TD Cowen rates Tesla a “Buy” with a $509 price target. Guggenheim maintains a “Sell” rating with a $175 target. DBS Bank upgraded shares to “Hold” on November 5.

The breakdown includes one Strong Buy rating, 21 Buy ratings, 13 Hold ratings, and 10 Sell ratings. William Blair holds a “Market Perform” rating.

Key technical levels include support at $400-$425 and resistance near $470. A break below $400 could trigger selling toward $365-$350. Institutional investors own 66.20% of outstanding shares.

Analysts forecast Tesla will earn $2.56 per share for the current fiscal year. The stock’s 200-day moving average sits at $338.25, indicating the long-term uptrend remains intact.