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Why one trader is betting against Tesla into earnings

Musk: All transports will go fully electric, except rockets

Tesla stock has been in high gear, but one trader is expecting a "check back" when it reports earnings Wednesday.

Shares of the electric-auto maker have been on a hot streak, hitting high after high and soaring nearly 50 percent this year. The explosive move comes as car companies Ford and GM are struggling, falling a respective 9 percent and 4 percent in 2017 as new cars sales continue to drop and auto loan defaults increase. Tesla surpassed both Ford and GM to become the most valuable U.S. car company in April.

"There's a lot of good news with [Tesla]," Dan Nathan of RiskReversal.com said Tuesday on CNBC's "Fast Money." "If you think about what's going on with Tesla having its market cap pass both GM and Ford over the last few weeks, we spend an awful lot of time focused on this company ... but, this is the future," he added.

According to Nathan, the stock may have come a bit too far, too fast. "I really think you're going to have a check back to around the $300 level – the breakout level from just a couple of weeks ago," Nathan added.

Tesla will report earnings after the bell Wednesday, and the options market is implying about a 5.5 percent move in either direction, which is actually shy of the average 10 percent move since its IPO in 2010.

Tesla shares were down 2 percent ahead of its report Wednesday.

Watch: Pro weighs in on Tesla earnings

Tesla adj. loss ($1.33) vs. ($0.81) est.