Tesla stock has soared this week on easing U.S.-China tensions. Some market watchers say the stock's rally is setting off alarm bells. Tesla (TSLA) "is flashing overbought technicals,” wrote Matthew Unterman,

U.S. tariffs on Chinese goods were reduced to 30% for a period of 90 days, while Chinese tariffs on U.S. goods were lowered from 125% to 10%.

Thanks to its success in the auto industry, Tesla has become one of the most valuable businesses in the world. But the electric vehicle (EV) stock is now 38% below its peak -- a tumble that might have some investors wondering whether this is an opportunity to buy the dip.