Tesla shares slide premarket a day after massive 22 percent rally: What's going on? – Tesla (NASDAQ:TSLA)

Shares of Tesla Inc. TSLA saw a decline in premarket trading on Friday. This decline follows a significant rally that saw the company's stock post its biggest single-day gain in over a decade.

What happened: Tesla shares fell nearly 2% in premarket trading on Friday, according to data from Benzinga Pro. The decline comes as investors opted to take profits following a remarkable 22% rise in the share price.

This rally was fueled by a significant increase in options activity, indicating increased interest or speculation in the stock. However, the subsequent decline suggests that some investors are taking advantage of recent gains.

See also: Tesla shareholders demand answers from Elon Musk on growing list of promises ahead of third-quarter results: from affordable models to the introduction of FSD and the next-generation Roadster

Market analysts are closely monitoring Tesla's stock movements as such fluctuations can affect overall market sentiment. Given Tesla's influential role in the electric vehicle sector, Tesla's performance remains a key concern for investors.

Why it matters: The recent surge in Tesla's stock price added nearly $150 billion to the company's market value, marking its best performance since 2013. This rally also resulted in a dramatic increase Elon MuskHis fortune increased by $33.5 billion in a single day. The stock rise was fueled by Tesla's announcement of its highest quarterly profit since mid-2023. During a webcast, Musk predicted vehicle sales would grow by up to 30% next year and the Cybertruck contributed to a quarterly profit for the first time.

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Disclaimer: This content was created in part with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Tesla