Tesla Stock: Retail Investors Buy the Dip as Insiders Sell Amid Price Volatility
Staff Editor Retail Investors Flock to Tesla Stock Amid Price Decline, Insiders Sell
In a striking display of market confidence, retail investors have poured $7.3 billion into Tesla stock over the past two weeks, despite the electric vehicle maker’s recent stock price decline. This surge in retail buying, as reported by JPMorgan, marks a significant “buy the dip” trend among individual investors.
The data reveals a 12-day streak of net positive retail buying in Tesla shares, representing the most substantial influx in magnitude over the past decade. While not the longest streak on record, it underscores retail investors’ eagerness to capitalize on opportunities amid broader market corrections.
However, this enthusiasm stands in stark contrast to the actions of Tesla insiders. Since November, board members and executives have sold $335.2 million worth of stock, with transactions occurring at prices ranging from $300 to $400 per share. Most recently, board member James Murdoch divested $12.9 million in shares at approximately $240 per share.
In response to the stock’s volatility and negative media coverage, Tesla CEO Elon Musk addressed employees at a recent town hall meeting. Musk encouraged staff to retain their stock, attributing some of the recent challenges to a boycott of the Tesla brand. He also emphasized the potential of autonomous driving technology to bolster Tesla’s value on Wall Street in the future.
As retail investors and company insiders move in opposite directions, market observers are closely watching Tesla’s stock performance and the broader implications for investor sentiment in the electric vehicle sector.
