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A Tesla car dealership is seen on May 31, 2023 in Austin, Texas.
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Check out the companies making the biggest moves in premarket trading:

Tesla – Shares dropped more than 3% before the bell after Morgan Stanley downgraded the electric vehicle maker to equal weight, citing its steep valuation following the recent AI-fueled rally.

Darden Restaurants — The company behind Olive Garden and other restaurant chains slid nearly 4% in the premarket. Darden beat expectations of analysts polled by Refinitiv for earnings in the fiscal fourth quarter, while revenue came in line with expectations. Its full-year earnings guidance placed the consensus estimate of analysts polled by FactSet on the higher end of the company’s range. Meanwhile, Darden’s revenue guidance was higher than Wall Street forecasted. The company also increased its quarterly dividend and announced Chairman Eugene Lee would retire.

Overstock.com — Shares moved nearly 10% higher in premarket trading after the e-commerce discounter won the auction for Bed Bath & Beyond’s digital assets and intellectual property, including the brand’s name. Overstock will pay $21.5 million, the floor price set at the auction.

NRG Energy — The energy company added 3% following a Wall Street Journal report that activist investor Elliott Investment Management is seeking to remove CEO Mauricio Gutierrez and other top executives.

Anheuser-Busch Inbev — The beer giant gained 2% after being upgraded by Deutsche Bank to buy from hold. The Wall Street firm said the stock is pricing in only downside risk without the expectation for recovery. Consumers could also inevitably return to Bud Light after fleeing over its collaboration with transgender influencer Dylan Mulvaney.

Alcoa — Shares of the aluminum company slumped 3.5% in premarket trading after Morgan Stanley downgraded Alcoa to underweight from equal weight. The investment firm said in a note to clients that Alcoa is at risk of missing estimates on a key profit metric in the coming quarters.

KB Home — The homebuilder fell nearly 2% despite posting a solid earnings beat after the bell Wednesday. Second-quarter earnings per share came in at $1.94, topping the $1.33 expected from analysts polled by Refinitiv. Revenue was $1.77 billion, versus the $1.42 billion expected. The stock has run up more than 60% this year.

Spirit Aerosystems — The Boeing supplier sank about 9% after the company suspended production in its factory in Kansas following an announcement that workers will strike, starting Saturday. Boeing shares also dropped 3.4%. Spirit Aerosystems makes Boeing’s 737 Max fuselage, as well as the forward section of many of its other aircrafts.

— CNBC’s Samantha Subin, Jesse Pound and Alex Harring contributed reporting.

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