Everyone knows Tesla (TSLA) has been one of the strongest stocks of 2020. But its gains have slowed in the last two months. It’s now actually lagging General Motors (GM) on a trailing three-month basis.
Two diverging forces are at work. TSLA’s last quarter was decent but investors see risk of a capital raise and less profit from green-energy credits. Meanwhile, GM and Ford Motor (F) are enjoying strong demand for high-margin pickup trucks and SUVs.