Hyperdrive
Tesla’s Rally Is Showing Signs of Unraveling
- Stock still in overbought territory, despite recent selloff
- Two analysts downgrade stock in two days, warning on valuation
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Tesla Inc.’s lightning quick rally over the past month is showing signs of unraveling as Wall Street warns that investors are too optimistic about the electric-vehicle maker’s artificial intelligence credentials.
Despite the stock closing 2% higher Thursday, two technical signals are still flashing red. Wednesday was a so-called “outside-down” day for Tesla, which is when a stock touches a higher-high than the previous day, as well as a lower-low, and then closes below the previous day’s low. Shares fell 5.5% on Wednesday.