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Elon Musk
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“ ‘ We have to remember that Amazon was in a bubble in 2000. It crashed, it fell 90% — I don’t think Tesla is going to fall 90% — but it crashed, and then 10 years later it was running the world. So even if Tesla is going to run the world someday, it doesn’t mean it can’t drop significantly when it gets as overbought as it is right now.’ ”
That’s Matt Maley, Miller Tabak’s chief market strategist, tapping the brakes on Tesla in a CNBC interview this week as shares of the electric-car maker continue to break through fresh highs.
In Thursday’s session, with the Dow Jones Industrial Average DJIA, +0.82% up triple digits, Tesla’s stock TSLA, +5.48% was rallying more than 2%, breaking through $2,200 to bring its rally for the year up to about 430%. Amazon AMZN, -0.36%, as you can see, hasn’t fared too badly either.
“I’m not one of those perma-bears,” Maley added. “I mean back 15 months ago when the stock dropped below $190, I said ‘back up the truck and buy with both hands.” Since trading around those levels way back in June 2019, Tesla has exploded for a rally of more than 1,100%.
Read: Tesla and Apple have had a great run — here’s why there’s more to come
Along the way, as Maley pointed out, the stock has averaged two pullbacks double-digit pullbacks each year for the past 10 years. “It’s only had one so far this year. I think it will have another one,” he said. “It is way overbought.” Watch the full interview:
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