Retail investors are dumping money into Tesla shares, with the stock increasingly seen as a bet on artificial intelligence in addition to the leader in the electric vehicle space.
According to Vanda Research, retail traders have ramped up their bullish bets on the EV maker this year, with the 10-day moving average of retail flows into Tesla far outpacing retail flows into other EV stocks, as well as flows into AI stocks, per Vanda data. Retail purchases of EV stocks other than Tesla make up just 6% of average daily Tesla purchases, and make up just 5%-10% of average daily Tesla purchases compared to the fourth quarter of 2020 and the first quarter of 2021, when Tesla inflows peaked.
But it's not just a bet that Tesla will be the top dog in the EV fight that's driving more investment, Vanda says. The blistering rally in Tesla shares in 2023 is partly attributable to the excitement for artificial intelligence technology, which has taken large-cap"This hardly looks like a resurgence of the EV theme from a retail perspective," the research group said in a note on Thursday.
Institutional investors have also ramped up their Tesla bets, the note added, a sign that the appetite for Tesla stock has room to grow.
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