Shares of Tesla Inc. fell nearly 3% Friday, and were down for the week, as a couple of Wall Street downgrades put the brakes on earlier gains.
The electric vehicle giant’s stock
TSLA,
was down more than 1% on the week, set to snap a five-week winning streak in which it soared more than 55%.
See also: Tesla’s EV charging standard is becoming widely adopted, in another boost for the stock
The stock’s selloff comes at a time of a bullish chart development, as the widely followed 50-day moving average (a short-term trend tracker) rose back above the 200-day (a long-term trend tracker) for the first time since May 26, 2022.
Two Wall Street analysts downgraded Tesla earlier in the week, including known Tesla bull Adam Jonas with Morgan Stanley.
Jonas said he acted on valuation and on the thought that the EV maker will likely continue to lower its vehicle prices amid increased competition. Barclays analysts also downgraded their rating on the shares this week, saying that the stock rally had been “too sharp.”
On Friday, German bank’s DZ Bank downgraded their rating on Tesla stock to sell.
Tesla’s stock holds a commanding overperformance vs. the S&P 500 index
SPX,
gaining 110% year to date compared with a 13% advance for the broader index.
