Shares of Tesla Inc. TSLA saw a decline during pre-market trading on Friday. This decline follows a substantial rally that saw the company’s shares post their biggest single-day gain in more than a decade.

What happened: Shares of Tesla fell nearly 2% during pre-market hours on Friday, according to data from Benzinga Pro. The decline can be attributed to investors choosing to lock in their gains following a notable 22% rise in the share price.

This rally was fueled by a significant increase in options activity, signaling increased interest or speculation in the stock. However, the subsequent decline suggests that some investors are taking advantage of the recent gains.

See also: Tesla shareholders demand answers from Elon Musk on growing list of promises ahead of Q3 earnings: from affordable models to FSD rollout and next-generation roadster

Market analysts are keeping a close eye on Tesla’s stock movements as such swings can impact broader market sentiment. Tesla’s performance remains a key focus for investors given its influential role in the electric vehicle sector.

Why it mattersThe recent surge in Tesla’s stock price added nearly $150 billion to the company’s market value, marking its best performance since 2013. This rally also resulted in a dramatic increase in Tesla stock prices. Elon Musk‘s wealth, with his net worth increasing by $33.5 billion in one day. The price increase was caused by Tesla’s announcement of the highest quarterly profit since mid-2023. During a webcast, Musk predicted a 30% growth in car sales for the coming year, and the Cybertruck contributed to quarterly profit for the first time.

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Disclaimer: This content was produced in part with the help of Benzinga Neuro and was reviewed and published by Benzinga’s editorial staff.

Image via Tesla