Shares of Tesla Inc. fell Tuesday, putting the electric-vehicle giant’s stock in danger of snapping its longest winning streak in more than three months.
The stock
TSLA,
slipped 0.5% in morning trading. It had run up 13.5% amid a five-session winning streak to close Monday at its highest price since April 4.
The streak has been the stock’s longest since the eight-day stretch that ended Feb. 9.
Analyst Colin Rusch at Oppenheimer said with EV production “clearly accelerating” in recent months, he sees Tesla investing in innovations to enable scaling, increased simplicity and the derisking of its supply chain.
“These efforts, notably around lithium refining, vehicle simplicity, materials optimization, and software learning cycles, continue to be well ahead of peers,” Rusch wrote in a note to clients. “However, we believe the key near-term question for [Tesla] shares remains automotive [gross margin] as the company continues to grow share of global [light-duty vehicles].”
Rusch reiterated the perform rating he’s had on the stock since he downgraded it from outperform on Dec. 19, 2022.
The stock’s pullback on Tuesday comes amid weakness in the broader stock market, as both the S&P 500
SPX,
and the Nasdaq Composite
COMP,
shed 0.4%.
Year to date, Tesla’s stock has soared 52.6%, while the Global X Autonomous & Electric Vehicles exchange-traded fund
DRIV,
has rallied 18.3%, the Nasdaq has gone up 21.1% and the S&P 500 has gained 8.7%.
