Image from MarketBeat Media, LLC. Key Points Shares fell 2.6% to about $417 with volume slightly below average, and the stock carries a very high P/E (~386) versus a consensus price target near $408, leaving upside limited and any rally fragile. A new Tencent cloud deal will add WeChat‑linked in‑car features and faster OTA updates in China, and regulator moves to curb EV price wars may help stabilize pricing and margins in Tesla’s largest market. Execution and competitive risks are mounting—Tesla lost the top EV seller crown in Europe to Volkswagen, faces robotics competition (Apptronik) and an AI/infra VP departure, and insiders recently sold roughly 119,457 shares. Tesla P/E Hits 400: 2 Reasons It's Still a Buy, 1 to Avoid Tesla (NASDAQ:TSLA - Get Free Report) last issued its earnings results 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. The business had revenue of $24.90 billion for the quarter, compared to the consensus estimate of $24.75 billion. Tesla had a return on equity of 4.86% and a net margin of 4.00%.The company's revenue was down 3.1% compared to the same quarter last year. During the same period last year, the business posted $0.73 EPS. Sell-side analysts predict that Tesla, Inc. will post 2.56 EPS for the current fiscal year. Insider Activity In other Tesla news, Director James R. Murdoch sold 60,000 shares of the company's stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $445.40, for a total value of $26,724,000.00. Following the completion of the transaction, the director directly owned 577,031 shares in the company, valued at $257,009,607.40. This represents a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Kimbal Musk sold 56,820 shares of the business's stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $450.66, for a total value of $25,606,501.20. Following the completion of the transaction, the director owned 1,391,615 shares in the company, valued at $627,145,215.90. The trade was a 3.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 119,457 shares of company stock valued at $53,501,145 in the last ninety days. Corporate insiders own 19.90% of the company's stock. Institutional Trading of Tesla Several hedge funds have recently made changes to their positions in TSLA. Chapman Financial Group LLC acquired a new position in Tesla during the second quarter worth $26,000. Networth Advisors LLC acquired a new stake in shares of Tesla during the 4th quarter worth approximately $26,000. Davidson Capital Management Inc. raised its holdings in 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 buying an additional 27 shares during the period. Manning & Napier Advisors LLC acquired a new stake in shares of Tesla during the third quarter valued at about $29,000. Finally, LGT Financial Advisors LLC purchased a new stake in shares of Tesla in the 2nd quarter valued at approximately $29,000. 66.20% of the stock is currently owned by hedge funds and other institutional investors. Tesla Company Profile