How Tesla continues to lead the celebrity stock race
How Tesla continues to lead the celebrity stock race

How Tesla continues to lead the celebrity stock race

 Over the past few months, Elon Musk competed with Jeff Bezos for the title of the richest person in the world. While Amazon is not a company anyone should simply ignore, Tesla has been the star for a while, mostly because Elon’s remarks can shake any market he mentions in his Tweets.
Bitcoin and the decline
There are many reasons why Tesla’s stock has been tumbling for a while. Recently, the company’s bet on Bitcoin was well-received yet its owner’s remark about the Cryptocurrency being a bit too high sent it tumbling and with it the shares of Tesla. Elon cleared his name from the decision-making process by mentioning that it was a company business move and not a personal decision.
Furthermore, the race seems to be heating up with many car companies coming up with their own, mostly cheaper alternatives to the different Tesla models available. Of course, this creates competition that Tesla didn’t have to deal with at one point due to its advanced technology and dominant presence in the market.
Other reasons include cyclical factors and rotation of funds among different sectors which are typical given the constant stream of events that tend to shift sentiment almost daily.
Stellar performance in play
While investors might find many reasons why a stock should be lower, Tesla remains a solid company with a promising stock. Furthermore, given the healthy corporate environment across the US, a lower price attracts investors who are still seeing potential. In layman's terms, a beautiful opportunity happens when a stock is down but in a clear uptrend and supported by an overall positive sentiment in the market.
A closer look at recent history reveals a stock that is up 1300% since October of 2019 following a third-quarter profit report that surprised investors. While the trend is still intact, volatility is on the horizon, creating opportunities for day traders and possibly scaring away some of those risk-averse investors, for now.
On a final note, Elon and his team have created something out of nothing and will continue to shape the future of cars and other endeavors that he decides to tinker in. When it comes to Tesla, it is not for the faint of heart, and Elon’s tweets have been so influential that they have created opportunities in other markets. This led to a more religious following and people constantly on the lookout for what he has to say next. Nonetheless, his approach and influence could spell turbulence for the company and not necessarily from a business perspective and too much spotlight could backfire even for the most veteran out there.
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