Tesla CEO Elon Musk arrives at federal court, April 4, 2019 in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal.
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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 9%, 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 and for its biggest one-day loss since May 1. That 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. Amazon, Apple, Netflix and Alphabet were all down at least 0.8% 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.” “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 over 50%.
On Thursday, 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 topping a Refinitiv estimate of 3 cents per share.
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