Tesla and Other High-Flying Stocks Poised for Pullback in 2025

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Stock Market,Tesla,Pullback

Despite record gains in the stock market this year, several top-performing companies, including Tesla, may see declines in 2025. Analysts predict a potential pullback for these stocks, citing overvaluation and potential headwinds from policy changes.

While the stock market has seen record gains this year, several of its best performing companies may be due for a pullback. Throughout 2024, all three major stock averages have hit high after high. Year-to-date, the tech-heavy Nasdaq Composite has led the charge, surging 30% through Friday. The broad market S & P 500 and the blue-chip Dow Jones Industrial Average , meanwhile, have risen 24% and 14%, respectively.

Pro, using its stock screener tool , screened for stocks in the S & P 500 whose consensus analyst price target implies at least 5% potential downside, using data as of Dec. 17. Below are a few companies that turned up. Tesla has been on a tear following the victory of President-elect Donald Trump, even though the former president has been viewed as unfriendly to clean energy stocks. Since Nov. 5, the stock has soared about 67% through Friday, just about the entire year's performance.

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