Tesla’s Retail Fans Buy the Stock at a Pace Never Seen Before
Tesla Inc. is currently facing a significant downturn in its stock price and sales globally. Despite this, CEO Elon Musk’s loyal fan base is showing unwavering support by purchasing Tesla shares in record numbers.
Individual investors, who closely follow Musk’s every move on X (formerly Twitter), have been consistently buying Tesla shares for 13 consecutive sessions, injecting $8 billion into the stock. This level of enthusiasm among retail investors is unprecedented, especially considering Tesla’s stock has plummeted by 17% during this buying spree, resulting in a $155 billion loss in market value.
The dedication of Musk’s followers is evident on online forums and social media platforms, where discussions about Tesla’s stock remain lively. Many investors see the current dip in Tesla’s stock price as an opportunity to buy in at a discounted rate, with some expressing their satisfaction at purchasing shares in the $225-$230 range.
Nicholas Colas, co-founder of DataTrek Research, acknowledges the wealth that Tesla has generated for many investors in the past, attributing the ongoing support to the belief that the company has the potential for a comeback.
Despite the recent decline in Tesla’s stock price, analysts remain optimistic about the company’s future. Adam Jonas from Morgan Stanley lowered his price target and sales expectations for Tesla due to growing competition and negative brand sentiment but maintained a buy-equivalent rating. Wedbush analyst Daniel Ives praised Musk’s leadership during challenging times and highlighted the importance of autonomous-driving technology and robotics in Tesla’s growth trajectory.
The ongoing support from individual investors, driven by their belief in Musk’s vision and the future potential of Tesla, continues to fuel optimism for the company’s prospects. While Wall Street remains cautious, retail traders remain steadfast in their commitment to Tesla’s success.
