Tesla Rally Loses Steam: What’s Going On With EV Maker’s Stock In Premarket Trading? – Tesla (NASDAQ:TSLA)

Tesla, Inc. TSLA fell in premarket trading on Monday, signaling the risk of the stock snapping an eight-session winning streak, while index futures are trading on a flat note.

After a protracted broader downtrend, the electric vehicle marker’s stock began to reverse course on June 25 as market participants began pricing in better-than-feared second-quarter deliveries. The stock rally accelerated after the company announced that it sold more cars than expected. Over these eight sessions, the stock has tacked on about 38%.

Tesla’s longest-ever winning run is a 13-session streak that ended on Jun. 13, 2023.

See Also: As Tesla Rally Hurts Shorts, Fund Manager Says ‘Fundamentals Of The EV Business Are Too Strong’ And Elon Musk-Led Company ‘Too Well Positioned’

The company is scheduled to report its second-quarter results in a little over two weeks and no major catalysts are due between now and then. Analysts, on average, expect the company to report earnings of 60 cents per share on revenue of $24.24 billion, according to Benzinga Pro data. A year ago, Tesla reported EPS of 84 cents per share and revenue of $22.96 billion.

In the eventuality of the stock sustaining the premarket losses, it has to hold support around the $242 area to arrest any further downside. The 14-day relative strength index suggests the stock is in overbought territory and could be a prime candidate for profit-taking.

Price Action: At the time of writing, Tesla’s stock was down 1.10% in premarket trading to $248.74, according to Benzinga Pro.

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Photo courtesy: Tesla