Tesla shares were under pressure on Friday as investors continued to take profits from some of the best-performing stocks of 2020.
The stock dropped 6.1%, building on a 5% decline from the previous session. Friday’s losses put Tesla on track for its first back-to-back weekly decline since early May; the shares were also headed for their worst day since May 1. This would also be the stock’s third one-week loss in 10 weeks.
Tesla’s recent declines come as other high-flying stocks fell as well. Apple, Facebook, Alphabet and were all down at least 0.5% Friday. Those losses come amid increasing concerns over the global economy as the coronavirus pandemic rages on and U.S.-China tensions rise.
“These stocks have been outperforming and as investors get a little bit skittish, I think they naturally pull back a little bit more,” Gene Munster, managing partner at Loup Ventures, told CNBC’s “Squawk Box” on Friday. “I do not think there’s anything fundamentally wrong with most of these companies … I think most of them are still great companies to own for the long term.”
Tesla has been on fire this year, rallying more than 250%. Over the past month alone, the shares are up more than 50%.
On Wednesday, Tesla reported its fourth straight quarterly profit, making it eligible for inclusion in the S&P 500 index. The company’s adjusted profit totaled $2.18 per share, easily topped a Refinitiv estimate of 3 cents per share. To be sure, about 7% of those profits were driven by the sale of regulatory credits.
Correction: Tesla reported its fourth straight quarterly profit on Wednesday. An earlier version misstated the day.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
Tesla shares were under pressure on Friday as investors continued to take profits from some of the best-performing stocks of 2020.