Retail traders invest $8 billion in Tesla shares
Retail traders buy $8.1 billion in Tesla stock, biggest streak in over a decade
Retail traders have poured a remarkable $8.1 billion into Tesla stock over 13 consecutive trading days, marking the largest retail buying streak by dollar amount in over a decade, according to JPMorgan.
Emma Wu, a strategist at the bank, emphasized that while this streak isn't the longest, it represents the highest magnitude of retail investment in Tesla during such buying periods. This surge in retail buying comes as the broader market shows signs of correction, reports Cryptopolitan.
Wu noted that small investors are actively hunting for opportunities, buying the dip in the hope of capitalizing on lower stock prices. However, this enthusiasm among retail traders contrasts with the actions of Tesla insiders, who have been quietly selling their shares.
Tesla Insiders Exit with Millions
Since November, Tesla insiders, including board members and even Elon Musk's brother Kimbal, have sold off a combined $335.2 million worth of stock. Most of the sales occurred when Tesla's stock was trading between $300 and $400. As of Friday, the stock had dropped to $242 per share.
James Murdoch, a Tesla board director, sold $12.9 million worth of Tesla shares on March 10 at around $240 per share. While insiders have taken profits, CEO Elon Musk has tried to keep morale high.
During a town hall with employees, he urged them to hold onto their shares, emphasizing that the real value would be realized when autonomous driving becomes a mainstream reality. Despite his reassurance, the stock price continues to face downward pressure.
Financial Results and Market Fears
Tesla’s most recent financial report didn’t help boost confidence. In Q4 2024, the company posted revenue of $25.71 billion, a mere 2% increase, missing analysts' expectations of $27.26 billion. Automotive revenue fell 8% to $19.8 billion due to lower vehicle prices. Operating income dropped 23%, and net income plummeted by 71% to $2.32 billion, partly due to a one-time tax benefit.
Additionally, Tesla experienced its first annual decline in deliveries, with just under 1.8 million vehicles shipped in 2024. Despite a 40% gain over the past year, Tesla shares have seen a significant 40% drop in 2025 alone, driven by weak sales and growing market concerns.
As we wrote, Tesla shares rose nearly 5% on Wednesday following news that the company received approval for a key permit that brings it one step closer to launching robotaxi ride-hailing in California.
