Gordon Johnson KO's SolarCity Rally

SolarCity Corp SCTY shares were trading lower by $2.30 at $31.52 in Thursday's session. The issue was on its way to a strong showing, when Axiom's Gordon Johnson warned of concerns regarding California's net metering plan.

Since the company is the state's biggest solar maker, the state's metering plan if approved could be "very bad" for Solar City.

Shortly before 12 p.m. ET, the issue was trading above the $35 level. As the Street digested the note, shares of the issue plunged through the remainder of the $35 handle, then $34, $33, $32 and $31 handles.

At this time, it found intra-day support at $30.88 and resounded back into the mid-$31 handle.