Tesla CEO Elon Musk.STR/AFP via Getty Images
According to Vanda research firm, Tesla is now the most-purchased stock, surpassing Apple. The cumulative net retail sales of Tesla stock increased by 424% to $15.41 million this year. As the stock’s price fell during a historic selloff, flows to Tesla stock increased.
Research firm Vanda announced Wednesday that Tesla has surpassed Apple as the most preferred stock for retail investors in 2022. This is due to the historic sale of the electric vehicle maker driving a surge in recent buying.
Vanda stated in a weekly report that cumulative net retail sales in Tesla stock rose by 424% to $15.41 trillion this year, up from $2.94 billion 2021.
This year’s cumulative net Apple purchases surpassed $15.21 trillion. However, the growth rate for Apple was only 18%, compared to $12.85 billion in 2021.
Although flows into Tesla declined after the company’s August stock split, they soon began to surpass those of Apple.
“[Retail] Investors’ contrarian bias shifted to a higher gear as TSLA share fell following Musk’s recent antics in Twitter’s CEO position and against Apple earlier this month,” Marco Iachini (senior vice president of research at Vanda), wrote in the last note of 2022.
The worst sell-off since 2010 has seen Tesla shares drop 60% for 2022. Tesla’s loss for the year surpasses that of the S&P 500, which has dropped 18%, and the Nasdaq 100, which has fallen 31%. Apple stock lost 23% in the past year.
Tesla’s stock price has fallen rapidly in recent weeks due to concerns from analysts and investors that Musk is too focused on Twitter. He acquired it for $44 billion in October.
Musk claimed that Apple threatened to remove Twitter from its App Store last month. Later, he claimed that there was a “misunderstanding” and that Apple CEO Tim Cook never thought of doing it.
Tesla, Apple, and other large-cap tech firms have seen their borrowing costs rise this year as the Federal Reserve raised interest rates. Investors are worried about a possible recession.
Vanda, however, pointed out Tesla’s reach by stating that Tesla makes up approximately 11% of an average retail portfolio.
Iachini stated that “Given its increasing importance, we see retail activity around them as a crucial indicator for what may be a full-fledged capitulation by 2023.”
Business Insider has the original article.
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By: insider@insider.com (Carla Mozée)
Title: Tesla has surpassed Apple as retail investors’ favorite stock in 2022, research firm says
Sourced From: markets.businessinsider.com/news/stocks/tesla-tsla-apple-stock-price-investors-popular-favorite-retail-markets-2022-12
Published Date: Wed, 21 Dec 2022 19:54:32 +0000
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