NEW YORK (TheStreet) -- A stellar Tuesday has turned into a dreary Wednesday for Tesla (TSLA) as the stock pares 4.2% to $138.54. By midday, shares were almost $6 lower than Tuesday's 16.5% gains to $144.32.
The high-momentum stock has seen recent gains on the support of a Morgan Stanley report, which called Tesla the top auto stock to own.
Over the year, the automaker has rocketed 307.5%, one of 2013's biggest market gainers. Since its market debut in mid-2010, it is up 618.9%, compared to the S&P 500's 75% gains over the same period.
However, some believe the stock's run-up has run out of steam. Financial broker and contributor to Real Money Pro Martin Tillier argued on Tuesday, "While a young, dynamic company is grinding its way to profit, the market can be remarkably patient. Once that patience wears thin, however, as it seems to have done with TSLA, no amount of pointing out the unfairness of the situation will help."
"I am convinced that only a couple of quarters of solid profits will turn the sentiment around again and that could now be delayed, making a test of $100 more likely than a quick recovery."
TheStreet Ratings team agrees, rating Tesla Motors Inc as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate Tesla Motors (TSLA) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins."