Tesla is facing several challenges, including a decline in stock prices and sales, yet retail investors remain committed to supporting the automaker.
Market Challenges and Investor Reactions
Tesla's shares have dropped 34% from their all-time high, with second-quarter sales declining by 14%, missing analysts' predictions. Meanwhile, CEO Elon Musk is embroiled in political conflicts with Donald Trump. However, many retail investors, like Nick Dolya from Florida, continue to invest in Tesla shares, believing in the company's future.
Retail Investors vs. Institutional Investors
Despite falling delivery numbers, Tesla's shares rose by 5%, driven by retail traders becoming the largest purchasers of the company's stock. On Interactive Brokers, Tesla was the most actively traded stock, with a staggering 236,826 buy orders. Retail investors, confident in Tesla's future, are buying the dip rather than selling.
Analyst Downward Revisions for Tesla
Analysts continue to warn that Tesla's stock is overvalued. For instance, Garrett Nelson from CFRA Research has given a fair value estimate of $258, which is 18% below the current price. While the average target among analysts is $311.12, retail investors remain active, believing they are making long-term bets on the company.
Retail investors in Tesla exhibit strong loyalty to the company, despite the challenges faced. Their confidence in the company’s future, in contrast to analysts' views, remains high.
