Individual retail investors are piling back into the stock of electric vehicle maker Tesla (TSLA) as the broader stock market recovers.
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Forget margin or options. Here's how the pros trade NVDAAccording to Vanda Research, TSLA stock has seen $256 million in retail inflows over the past five trading sessions as investors buy the dip and look to bottom fish shares of the beaten down technology company. The latest buying shows “strong conviction” on the part of investors, says Vanda in a note to clients.
Tesla’s stock also continues to be preferred by retail investors among the “Magnificent 7” technology group. Vanda notes that demand for stocks of other mega-cap technology companies such as Nvidia (NVDA), Meta Platforms (META), and Microsoft (MSFT) remain muted.
Retail Investors Turn Selective
In assessing the Magnificent 7 stocks, Vanda Research writes, “Retail remains engaged, but flows are less aggressive, more tactical, and increasingly selective, with a growing defensive bias under the hood.” However, retail investors appear to still gravitate to TSLA stock and its CEO Elon Musk.
Vanda says that individual investors appear to be taking advantage of the fact that TSLA stock has declined 23% this year and has been the worst-performing member of the Magnificent 7. Vanda notes that Tesla’s stock might also be getting renewed attention in the lead-up to the June initial public offering (IPO) of Elon Musk’s other company, SpaceX.
Is TSLA Stock a Buy?
Tesla’s stock has a consensus Hold rating among 32 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and eight Sell recommendations issued in the last three months. The average TSLA price target of $393.97 implies 13% upside from current levels.
