Shares of Tesla Inc. ended more than 5% lower Wednesday in the wake of a downgrade by Barclays.
The electric-vehicle maker’s
TSLA,
stock notched its worst one-day percentage drop since April 20, when it fell 9.75%.
Earlier Wednesday, analyst Dan Levy at Barclays said that for all that Tesla has been a momentum stock often “driven by more than fundamentals,” the surge that started in April, in which Tesla shares have gained about 70%, is likely “too sharp” against “challenging” near-term trends.
The analyst downgraded his rating on Tesla shares to the equivalent of hold.
Tesla shares have been on a tear in recent weeks, boosted by news that major U.S. automakers such as Ford Motor Co.
F,
and General Motors Co.
GM,
have forged agreements that will allow their EV owners to use Tesla’s fast-charging network, which has stations located alongside major highways.
On Tuesday, EV startup Rivian Automotive Inc.
RIVN,
announced a similar deal. The agreements have made Tesla’s EV fast-charging connector type, which it calls the North American Charging Standard, or NACS, the de facto standard in North America.
See also: Tesla’s EV charging standard is becoming widely adopted, in another boost for the stock
Shares of Tesla have more than doubled this year, up 111%, compared with gains of around 14% for the S&P 500
SPX,
in the same period. The stock is also in the black for a 12-month span, up 10%, while the S&P 500 has advanced 16%.