Tesla shares are tapping the accelerator again.
The electric automaker's stock has added 2% so far this month, better than the slight decline by the Nasdaq 100.
Gina Sanchez, CEO of Chantico Global, says its status as a "faith stock" could mean a bigger move is ahead.
"Tesla is definitely a faith stock and many investors in Tesla are really, really looking at the real long-term vision of this and willing to seemingly suffer a lot of pullbacks that happen in the interim and it causes the stock to develop an incredible momentum when it starts to run," Sanchez said Friday on CNBC's "Trading Nation."
Tesla has had a major run over the past three months, reversing its late spring and early summer slump. The stock is up nearly 50% since early September.
Even so, Sanchez said it could be at risk of coming back down to earth.
"Remember, three months ago we were worried about production, six months ago we worried about production, this company still has issues, and when it overshoots like this, it naturally will come back," Sanchez said. "No matter how bullish the story, it still has to block and tackle and meet all of the interim requirements in order to maintain that bull story."
Morgan Stanley analysts upped their bull case price target to $500 last week on potential Cybertruck sales and growth into China. A move to that level would mark a 48% rally from current levels.
JC O'Hara, chief market technician at MKM Partners, said Tesla investors should get used to these wild moves in the shares.
"This stock is extremely susceptible to these large momentum swings. Just look back at last June. The stock was cut in half, it was on multiyear support at $185. Since then the stock doubled, but now it's overbought and at resistance in that $365-$380 area," O'Hara said during the same segment.
However, after its autumn rally, O'Hara warns that it could be building toward a breakdown.
"You know an overbought stock at resistance," said O'Hara. "I would rather exercise some patience. Wait for a pullback, and I think that'll be a better tactical buying opportunity."