Shares of Tesla shed as much as 10% on Friday as its recent epic rally took a pause.
The company this week reported blockbuster second-quarter earnings that beat Wall Street’s expectations and showed a fourth consecutive quarter of profit. That was the final milestone Tesla needed to hit to be considered for inclusion in the popular S&P 500 index.
Tesla traders may be taking some profits following an epic run that sent shares up nearly 300% year-to-date.
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While a slew of analysts, including Tesla bears and bulls, increased their price targets on the automaker following its earnings release, the group is still largely skeptical of the company.
Next, investors will be watching to see whether Tesla is indeed included in the S&P 500. They’ll also be awaiting the company’s Battery Day event, scheduled for September 22 at its factory in Fremont, California.
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