Tesla has been one of the most popular stocks among individual investors for the past few years. Despite the volatility in the market and doubts about the company’s strategy, investors continue to pour money into Tesla’s shares. In fact, individual investors have already invested $13.6 billion into Tesla’s stock so far this year, and the number is rapidly approaching the record sum of almost $17 billion invested in 2022. The electric vehicle (EV) maker is undoubtedly one of the hottest shares around, followed by tech giants Apple and Amazon. Even the lack of significant news from Tesla’s recent investor day failed to deter fans from buying the dip that followed.
Factors Driving the Surge in Tesla Stock Price
However, the stock’s meteoric rise hasn’t come without its fair share of turbulence. As of Friday, Tesla stock remained approximately 50% lower than its November 2021 peak of $409.97. The rise in interest rates and doubts about the company’s strategy have set a lower floor for shares. Nonetheless, Tesla’s CEO, Elon Musk, remains bullish about the company’s prospects. During the recent investor day, Musk touted the heat-pump technology that Tesla uses in its cars, saying he was “extremely excited” to build a home HVAC system based on it.
Why Investors Can’t Quit Tesla’s Stock
Tesla’s stock has been on a rollercoaster ride since its initial public offering (IPO) in 2010. However, individual investors can’t seem to quit Tesla’s stock despite the risks associated with investing in the company. Here are some reasons why:
Brand Loyalty: Tesla has a strong brand that appeals to environmentally conscious consumers. The company’s focus on sustainability and innovation has helped it build a loyal customer base. Tesla owners are often passionate about their vehicles and willing to pay a premium for them. This brand loyalty has translated into strong investor interest in Tesla’s stock.
Tesla’s Vision for the Future: Tesla’s vision of a world powered by renewable energy is compelling for many investors. The company’s ambitious goals, such as achieving a fully autonomous driving system and launching a fleet of robo-taxis, have captured the imagination of investors. Tesla’s mission to accelerate the transition to sustainable energy has resonated with many investors who see the company as a leader in the green energy movement.
Elon Musk’s Cult Following: Elon Musk, the CEO of Tesla, has a cult following among investors. Musk’s outspoken personality and visionary leadership style have attracted many investors who see him as a tech genius. Musk’s celebrity status has helped to promote the company and attract a large