- Tesla shed as much as 10% Friday, pulling back on a searing rally that saw shares hit multiple all-time highs in recent weeks.
- Most recently, the stock’s gains have been driven by a blockbuster second-quarter earnings report and optimism that it may soon be included in the S&P 500.
- Despite Friday’s hiccup, the automaker’s stock is up more than 240% year to date.
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Shares of Tesla shed as much as 10% Friday as its recent epic rally took a pause.
The company reported blockbuster second-quarter earnings this week that beat Wall Street’s expectations and showed a fourth consecutive quarter of profit. That was the final milestone Tesla needed to accomplish to be considered for inclusion in the popular S&P 500 Index.
Optimism that Tesla would meet the goal drove shares to multiple fresh highs ahead of the earnings release – Tesla hit an all-time high close of $1,643 per share on Monday. Shares popped as much as 6% early Thursday following the company’s earnings report, but pared those gains to finish the day lower.
Tesla traders may be taking some profits following the stock’s epic run that sent shares up nearly 300% year to date at recent highs.
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While a slew of analysts including Tesla bears and bulls increased price targets on the automaker following its earnings release, the group is still largely skeptical of the company as a whole.
Next, investors will be watching to see if Tesla is indeed included in the S&P 500. They'll also be anxiously awaiting the company's Battery Day event, scheduled to be held on September 22 at its factory in Fremont, California.
Still, even with Friday's losses, Tesla stock is up more than 240% year to date.
