Tesla Inc.’s stock is experiencing an unexpected rebound, driven by individual investors who remain enthusiastic about the electric-vehicle maker despite its recent struggles. CEO Elon Musk’s fans have been net buyers of Tesla shares for 13 straight sessions, injecting $8 billion into the stock.
This buying frenzy comes as Tesla faces significant challenges, including plummeting sales and a decline in market value. The company’s share price has sunk 17% over this time period, wiping out more than $155 billion from its valuation.
Despite these concerns, retail traders are optimistic about Tesla’s future prospects. Nicholas Colas, co-founder of DataTrek Research, notes that Musk’s fans don’t care about valuations and will return to the stock if they believe it has been undervalued.
The turnaround is attributed, in part, to Musk’s leadership and vision for the company. Analysts such as Daniel Ives at Wedbush see a growth path where 90% of Tesla’s valuation comes from autonomous-driving technology and robotics. This optimism has sparked a rebound in the shares, with Tesla closing up 5.3% on Friday.
However, not all analysts are convinced. Morgan Stanley analyst Adam Jonas lowered his price target on the stock, citing growing competition, an aging vehicle lineup, and negative brand sentiment. Despite this, Musk’s efforts to reassure employees and investors appear to be paying off, at least in the short term.
Source: https://finance.yahoo.com/news/tesla-retail-fans-buy-stock-144151015.html