Shulou(Shulou.com)11/24 Report--

Tesla shares recorded their worst performance ever this year, according to news in the morning of December 29, Beijing time. However, this has not shaken retail investors' confidence in Tesla and his chief executive, Elon Musk.

Retail investors are continuing to buy heavily into Tesla shares, according to data from Vanda Research, a research firm. Retail investors have been buying aggressively every day this month, pushing net purchases to record highs in December and the fourth quarter.

On Wednesday, retail investors paid off for their persistence. Tesla shares closed up 3.3% at $112.71 on Wednesday, ending a seven-day decline. But as of Tuesday, Tesla's share price has fallen 70% this year, reducing its market capitalization by nearly $720 billion.

Rising interest rates are hitting growth stocks hard. Investors are also worried that demand for electric cars will be affected if the economy slumps. In addition, Musk recently acquired Twitter and needs to devote energy to managing the social media company and selling more Tesla shares to keep it alive. All these factors exacerbated the fall in Tesla's share price. Tesla was once the third worst performer in the S & P 500 index this year.

But for Tesla's die-hard fans, the risks facing the electric car industry and Musk's distraction still do not disappoint and worry them. Tesla was one of the biggest gainers in the US stock market during the epidemic.

"retail investors have bought more Tesla shares in the past six months than in the previous 60 months combined," said Viraj Patel, a senior analyst at Vanda Research. "for institutional investors, this is a seller's paradise when your buyer clearly doesn't understand the fundamental signals."

Tesla's shares fell 11% on Tuesday because of investor concerns about the company's production capacity. In addition, it was reported last week that Tesla offered a substantial discount of 7500 US dollars to US consumers who were willing to pick up the goods before the end of the year. This has raised fears that demand will perform poorly in the fourth quarter. Tesla is expected to announce the number of cars delivered in the fourth quarter in early January. Estimates for Tesla's car deliveries have been falling in recent weeks. On Wednesday, Baird analyst Ben Kallo cut his estimate, citing "possible weak demand".

Growth stocks as a whole have been hit hard this year. The Nasdaq 100 index tumbled 35% as the Fed raised interest rates sharply to curb inflation. Tesla is one of the companies that dragged down the index the most. Tesla's share price rose 1163% in the past two years, but its performance has plummeted this year.

"it feels like confidence has suddenly disappeared and Tesla's fairy tale has come to an abrupt end," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. Investors are more eager to know how the coming recession will hit Tesla's demand, how competition from other electric car manufacturers will affect Tesla's market share, and when Musk will stop doing other things to manage the shaky Tesla. "

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