A day after snapping its longest-ever winning streak, Tesla Inc. is embarking on a losing run.
The stock slid 3.2% as of 7:04 a.m. in New York premarket trading, having fallen 0.7% on Wednesday to halt 13 straight sessions of gains.
Tesla rose 41% in a 13-day ascent through Tuesday, pushing the world’s most valuable automaker deep into overbought territory. Its relative strength index rose to 88 earlier this week, far above the level of 70 that signals to some technical analysts that a stock may have risen too far, too fast.
The rally was fueled by positive newsflow that included General Motors Co. and Ford Motor Co. making moves to adapt their electric vehicles to Tesla’s Superchargers, Tesla Model 3 sedans becoming eligible for the full US tax credit, and a broader investor hunger for artificial intelligence stocks.
However, the hawkish stance taken by the Federal Reserve on Wednesday has caused shares of the year’s biggest winners to take a breather. Nvidia Corp., which has led megacap tech stocks higher this year, also fell in premarket trading, set to snap a five-day winning streak. Nasdaq 100 Index futures were trading down 0.7%
Story Link: Tesla Set to Extend Losses After Snapping Record Winning Streak
--With assistance from Esha Dey.
