Shares of Tesla Inc. ended more than 5% lower Wednesday in the wake of a downgrade by Barclays.
The electric-vehicle maker’s TSLA, +1.98% 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, +1.21% and General Motors Co. GM, -0.95% 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, -3.21% 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, +0.37% 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%.
