Tesla (TSLA) shares fell 3.8% on Wednesday, closing at $327.69, even as the company launched its long-anticipated robotaxi pilot in Austin, Texas. While analysts remain bullish on the long-term outlook, near-term concerns over Q2 deliveries and mixed investor sentiment have weighed on the stock.
Tesla stock slides despite positive momentum
Tesla’s stock has declined roughly 33% from its December 2024 peak of $488.54. The recent dip comes even as analysts praise Tesla’s controlled and safety-first approach to rolling out autonomous rides in Texas.
- Current price (June 25): $327.69
- Day’s change: -$12.78 (-3.8%)
- Market cap: $1.06 trillion
- 52-week range: $182.00 – $488.54
Benchmark analyst Mickey Legg raised his price target on Tesla to $475 from $350, citing strong early feedback from the robotaxi rollout and the potential for rapid scaling if regulatory and public support grows.
Institutional investors increase positions
Major funds are betting on Tesla’s future despite current volatility. Omnia Family Wealth LLC increased its stake by 46.6% in Q1, while other firms like Susquehanna and Harvard Management also expanded their holdings. As of now, institutions control over 66% of Tesla’s stock.
Notably, insider selling remains high—SVP Xiaotong Zhu and CFO Vaibhav Taneja offloaded shares worth over $5.8 million combined in recent months.
Analyst ratings diverge on Tesla’s outlook
Tesla currently holds a consensus rating of “Hold” based on 43 analyst opinions compiled by MarketBeat:
- Buy ratings: 19
- Hold ratings: 13
- Sell ratings: 10
- Average price target: $294.58
Despite the mixed sentiment, Tesla remains a top pick at Benchmark, which sees robotaxi development as a pivotal growth driver for the company in 2025.
Robotaxis launch in Texas amid safety focus
Tesla’s autonomous ride-hailing service is live in limited capacity in Austin, marking a major milestone in the company’s strategy. Analysts say this cautious debut could win over regulators and pave the way for broader deployment nationwide.
Still, operational challenges and public safety scrutiny loom. Analysts at Wedbush and Roth remain cautious, especially given prior delivery shortfalls and regulatory hurdles.
Key metrics and financial outlook
Tesla’s Q1 earnings fell short of expectations:
- EPS (Q1): $0.27 (vs. $0.53 est.)
- Revenue: $19.34 billion (vs. $22.93 billion est.)
- Forward P/E: 179.97
- Beta: 2.47 (higher volatility)
The company’s next earnings report will be closely watched for updates on production targets, delivery figures, and progress on autonomy.
Key Takeaways
- Tesla stock fell 3.8% to $327.69 despite a strong robotaxi launch in Texas.
- Institutional investors are increasing stakes, while insiders continue selling.
- Benchmark raised its price target to $475, citing long-term growth potential.
- Analysts are split, but Tesla remains a high-profile stock in a pivotal year.