Massive buying from index-tracking managers on Friday pushed Tesla shares up nearly 6% to an all-time high in extreme volume. The stock had also rallied aggressively for a couple of weeks as speculators bid up shares in a short-term trade to get ahead of the big flows. Some of these traders could be taking chips off the table.
“There is no reason to chase TSLA here,” Peter Naso, head of research content at Cornerstone Macro, said Monday. “The stock has been undergoing an orderly sequence of powerful advances, followed by periods of rest/consolidation. It is currently positioning for a period of rest/consolidation.”
Still, Monday’s drop merely gave back Friday’s final pop and didn’t make a dent in Tesla’s monstrous 2020 gains. The stock is up by more than 670%, one of the biggest winners this year.
