Amid Elon Musk-led Tesla Inc.'s TSLA latest financial reports, concerns have risen as a prominent investing champion suggested that the electric vehicle company's remarkable performance might be at a turning point.
What Happened: David Ryan, three-time U.S. investing champion and former portfolio manager, suggested that Tesla’s strong performance might be coming to a halt.
Ryan spoke on IBD Live and pointed out that Tesla’s stock had made three significant moves since June 21, but the latest move on July 3 occurred in lower trading volume, followed by a pullback on Thursday with higher-than-average volume.
He believes this indicates a potential slowdown in Tesla’s positive momentum. “That’s telling me that this move might be over for a bit.”
Irusha Peiris, portfolio manager at O’Neil Global Advisors, shared that he sold a portion of his Tesla stock when it fell below the 21-day line on Thursday, expressing disappointment in its performance and stating that he cannot closely monitor the stock currently, reported Investors.com.
Peiris mentioned that the best outcome for Tesla at the moment would be to maintain the 10-week line and establish a new base, acknowledging that it is not on the same level as companies like Nvidia Corp NVDA or Broadcom Inc. AVGO.
Why It's Important: On Thursday, after Tesla reported its earnings, the company's shares experienced a sharp drop of nearly 10%, causing it to lose around $90 billion in market capitalization.
Price Action: In premarket trading on Friday, Tesla stock rose 1.66% to $267.26, but dropped more than 1% to 260.01 when the markets closed, according to Benzinga Pro data.
Read Next: Here’s How Many Tesla Shares You Need To Own To Equal 1% Of Elon Musk’s Wealth
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