Tesla Stock Is Soaring. Here’s Why One Researcher Sees ‘Red Flags’
Tesla stock has soared this week on easing U.S.-China tensions. Some market watchers say the stock’s rally is setting off alarm bells.
Tesla (TSLA) “is flashing overbought technicals,” wrote Matthew Unterman, managing director of research firm S3 Partners. The stock’s Relative Strength Index (RSI) recently broke above 70, a threshold that signals to many momentum traders a stock has risen too much, too fast.
The last time Tesla’s RSI exceeded 70 was in December 2024 after shares soared to an all-time high following President Donald Trump’s re-election. That preceded a three-month slump that slashed the stock’s price in half, though there were several clear reasons for that: CEO Elon Musk’s government work stoked…
