Why Tesla Stock Is On Reverse Gear In Premarket Today

Tesla, Inc. TSLA shares moved to the downside in premarket trading on Monday.

The immediate catalyst driving the downside is another rating downgrade suffered by the company. Goldman Sachs analyst Mark Delaney downgraded the stock from Buy to Neutral in a note released Sunday, Investing.com reported. The firm, however, upped the price target for the stock from $185 to $248, citing higher estimates and increased valuation multiple.

The stock received back-to-back downgrades last week. Barclays analyst Dan Levy downgraded Tesla and Morgan Stanley analyst Adam Jonas lowered ratings from Overweight to Equal Weight. The former upped the price target from $220 to $260, and the latter from $200 to $250.

See Also: Everything You Need To Know About Tesla Stock

The common theme across these downgrades is the runup in the stock this year. So far, the stock is up over 108% and is the third best-performing S&P 500 stock.

The nervous sentiment seen among traders early Monday could also be traced back to the uncertainty over economic growth and interest rates, which weighed on last week’s broader market.

All sell-side analysts are optimistic about Tesla's long-term potential. The next big catalyst for the stock is likely to be the second-quarter deliveries update, likely due on July 2. News about the company's Cybertruck, which is scheduled for launch later this year, could lend some support to the stock in the near term.

In premarket trading on Monday, Tesla stock fell 2.22% to $250.91, according to Benzinga Pro data.

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