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.
“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.”
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.