Tesla stock was under pressure on Friday as investors continued to take profits on some of the best performing stocks in 2020.
The stock fell 6.1%, down 5% from the previous session. Friday's losses pushed Tesla to its first weekly decline since early May. The stocks also had the worst day since May 1st. This would also be the third week-long loss in 10 weeks.
Tesla's recent declines are due to the fact that other high-flying stocks have also fallen. Apple, Facebook, Alphabet and all were down at least 0.5% on Friday. These losses are due to growing concerns about the global economy as the coronavirus pandemic continues to grow and tensions between the US and China increase.
"These stocks have outperformed, and as investors get a little nervous, they will of course withdraw a little more," said Gene Munster, managing partner at Loup Ventures, on Friday at CNBC's Squawk Box. "I don't think anything is fundamentally wrong with most of these companies. I think most of them are still great companies in the long run."
Tesla was on fire this year, growing by more than 250%. In the past month alone, the shares rose by more than 50%.
On Wednesday, Tesla reported its fourth consecutive quarterly profit, which included it in the S&P 500 index. The company's adjusted earnings were $ 2.18 per share, slightly exceeding a refinitive estimate of 3 cents per share. However, these gains were mainly driven by the sale of regulatory loans.
Correction: Tesla reported its fourth consecutive quarterly profit on Wednesday. In an earlier version, the day was incorrectly specified.
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