Tesla Inc. stock rallied over 5% Thursday, on track for an eighth straight gain and soaring more than 20% in that period, but extra gains may be harder to come by, one analyst said.
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“While we certainly did not anticipate this type of move, at this point we think the rally has largely run its course,” BTIG’s Jonathan Krinsky wrote in a note titled “Time to fade Tesla.”
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A higher close would mark the longest winning streak for Tesla since an eight-session stretch that ended July 22. The stock has soared 20.8% over the past seven sessions, and rocketed 58.3% in the span of 14 sessions. It has more than doubled from a Jan. 6 low.
At last check, the stock traded around $211. The $210-to-$225 range, however, “represents a very strong area of resistance,” Krinsky said.
Tesla shares are 29% above their 20-day displaced moving average, a technical indicator, the analyst said. That’s the widest spread since November 2021, “and only exceeded a few times in its history,” Krinsky said.
“Even if you are bullish on the name, these levels appear overextended,” the analyst said.
Earlier this week, Chief Executive Elon Musk teased a “Master Plan 3” to be unveiled at an investor event on March 1.
Tesla last month reported mixed fourth-quarter earnings, but provided a sunnier outlook and said that demand for its EVs continues unabated.
The stock has run up 63.4% so far this year after tumbling 65% in 2022, while the S&P 500 index has tacked on 7.3% yea- to-date.