Tesla, Inc. TSLA shares fell sharply in premarket trading, extending the losses from Wednesday. The stock is moving in sympathy from the broader market, with the Nasdaq 100 futures down sharply on Thursday.
Shares of the EV maker were earlier on a record-breaking streak, having run up for thirteen straight sessions until Tuesday, on the back of a couple of charging infrastructure deals Tesla signed with legacy automakers General Motors Corp. GM and Ford Motor Co. F.
“Tesla’s sum-of-the-parts valuation is now finally starting to get tapped into,” said Wedbush analyst Daniel Ives in a note released on Wednesday.
“This reminds us of when the Street started to realize the margin story and valuation at AWS for Amazon and the growth/margins of the Apple Services story in Cupertino.”
Hopes of estimates rerating heading into the electric vehicle pioneer’s June quarter results and the broader market strength also supported the upside.
See Also: Everything You Need To Know About Tesla Stock
The reversal in the positive sentiment seen since Wednesday reflected a souring broader market mood after the Federal Reserve hinted at more rate hikes in the future despite the June pause. Traders could be using the development as a reason to take some money off the table.
If the stock violates its 100-day simple moving average around the $249 area at the open, it could seek support around the $228 level. Other key support levels are $214, and the 50-day SMA is around $209.
In premarket trading on Thursday, Tesla fell 3.26% to $248.43, according to data from Benzinga Pro.
Read Next: Elon Musk Recommends NACS As A Solution For Toyota’s Long Charging Times
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