“ ‘ 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 hit fresh highs.
At last check, Tesla’s stock TSLA,
“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%.
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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