Tesla (TSLA) stock declined over 2% on Thursday following a massive post-election surge from the "Trump trade" favorite.

The electric vehicle maker's stock started showing signs of overextension earlier this week after reaching a peak of $350. The stock had been on a tear in the days following Donald Trump's election victory over optimism that CEO Elon Musk's close ties to the president-elect.

On Thursday, shares were trading around $320 each, still up close to 15% from where they opened the day after the election. Tesla is up more than 30% this year after a brutal first half.

The company recently announced its sixth recall of Cybertrucks this year. On Wednesday, Tesla recalled 2,400 pickups due to a faulty part could lead to a loss of power and increase the risk of a collision.

Musk is one of the business world's biggest supporters of Trump and was a key surrogate for the president-elect in the final months of the campaign, donating at least $132 million to him and other Republican campaigns.

This week, Trump announced Musk and former GOP presidential candidate Vivek Ramaswamy would co-lead a new group to cut government waste.

On Monday, Tesla shares reached their highest level since early 2022, with Wall Street analysts growing increasingly bullish on Musk's connection to an incoming Trump administration.

"We are raising our price target on Tesla to $400 from $300 as we believe the Trump White House win will be a game-changer for the autonomous and AI story for Tesla and Musk over the coming years," Wedbush analysts led by Dan Ives wrote in a client note on Monday.

Wedbush sees artificial intelligence and autonomous driving as an opportunity worth $1 trillion to the company's value.

"Under a Trump White House these key initiatives will get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era," the note said.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance