Tesla, Inc. (NASDAQ:TSLA) shares were declining sharply in premarket trading on Thursday.
The stock has had a nice run-up to start the year, having rallied from an intraday low of $104.64 at the start of the year to an intraday high of $136.68 on Wednesday. This marked a trough-peak rally of 30.6%.
Amid the broader market weakness on Wednesday, Tesla pulled back from the high and ended 2.06% lower at $128.78. The weakness has spilled over into Thursday’s session, as the stock traded down 2.04% at $126.15 in premarket, according to Benzinga Pro data.
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Some of the weakness may be attributed to traders taking profit on the recent gains ahead of Tesla’s earnings report due on Jan. 25. Analysts are bracing for disappointing revenue and margins.
A negative analyst action may also be weighing on sentiment. Piper Sandler analyst Alexander Potter reduced his price target for Tesla shares from $340 to $300, joining a bevy of analysts, who recently made downward adjustments to their price targets.