According to the news app Zhitong Finance, Tesla (TSLA.US) stocks rose during early Friday morning trading, despite being downgraded by an analysis institution. However, by the end of the day's trading, the stock price had hardly changed. There are several reasons for this.

In pre-market trading on Friday, the share price rose more than 2%. By the end of the day, the share price had fallen slightly by 0.2%, to less than $220 per share. Meanwhile, the S&P 500 index and Dow Jones industrial average rose by 1.1% and 1.6%, respectively.

At this price, Tesla's stock is still about $25, or 10%, lower than the level prior to the company's second-quarter earnings report. Following the release of the report showing earnings per share of $0.52, Tesla's stock plummeted by 12%. According to FactSet data, Wall Street expected earnings per share of $0.61.

This disappointing performance has resulted in some analysts downgrading their ratings and target prices. Barclays lowered its target price from $225 to $220, while KGI Securities downgraded its rating to "neutral". On Friday, Tesla's stock was again downgraded. Analyst Jonathan Woo of Phillip Securities downgraded his rating from "shareholding" to "selling", and lowered the target price from $145 to $135.

Most brokerage ratings are divided into "buying", "selling", and "holding", but some brokerages have different ratings. However, "selling" and "shareholding" are very similar, which is one of the reasons why Tesla's stock price did not react much on Friday.

Another reason is that this downgrade reflects factors that have already affected the stock this week. Woo mentioned that price, tariff, and profit pressure were among the reasons for the downgrade. He added: "Management has barely spent any time dispelling concerns about its autos business coming to a standstill." These issues were already reflected in Wednesday's stock price decline.

Furthermore, Tesla's stock rose about $5 from its post-earnings low, as although the quarter's performance was poor, it was not as bad as expected. Some alleviating factors include employee restructuring costs that were larger than expected, as well as better-than-expected regulatory crediting sales revenue. Tesla sells these credits because the zero-emission vehicles it produces surpass quotas. Taking these factors into account, this quarter's results were nearly in line with analysts' predictions.

Technical support is also one of the reasons for Tesla's stock price drop. Stock market technical analysts observe investors' behavior by observing historical buying and selling points. Frank Cappelleri, founder of CappThesis, pointed out that $225 was a possible support level in the event that his prediction fell short prior to the earnings report. Over the past two days, the stock has largely hovered around this level.

Tesla's robot taxi day is set for October 10th. Investors hope to learn about the company's progress in autonomous driving taxis and how it plans to profit from the technology. For Tesla investors, robot taxis and autonomous cars are of extraordinary importance. From the low point of April to the second-quarter earnings report, Tesla's market capitalization increased by about $300 billion. Much of this growth comes from optimistic expectations for autonomous driving business. The quarterly report had little impact on prospects for robot taxis.