S3 Partners Warns That Tesla Stock Is ‘Overbought.’ What Could Come Next for TSLA Stock.

Electric vehicle (EV) leader Tesla’s (TSLA) stock was finally seeing some momentum after battling news of dwindling sales, CEO's Elon Musk’s heightened focus on his government duties at the cost of the company, intense competitive pressure, and the impact of high tariffs on China and other key U.S. trading partners. 

However, Matthew Unterman of financial data analytics firm S3 Partners may be raining on the parade. In recently published research, Unterman warned that Tesla stock "is flashing overbought technicals.” The stock’s Relative Strength Index (RSI), a key indicator of momentum, had crossed 70 at the time the note was published, which points to the fact that the stock is overbought. The last time this happened was in December 2024, which followed a halving in the stock’s price and a three-month-long correction. Investors should note that as of this writing, the 9-day RSI has moved slightly below 70 to 69.53.