{"id":39005,"date":"2023-07-22T05:14:06","date_gmt":"2023-07-22T09:14:06","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/tesla-bulls-say-they-love-the-stock-trading-data-suggest-thats-not-true\/"},"modified":"2023-07-22T05:14:08","modified_gmt":"2023-07-22T09:14:08","slug":"tesla-bulls-say-they-love-the-stock-trading-data-suggest-thats-not-true","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=39005","title":{"rendered":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That’s Not True."},"content":{"rendered":"
\n
<\/p>\n
<\/p>\n<\/figure><\/div>\n

The
\n Tesla
\n bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a lot fewer true bulls than investors assume. Just look at how the stock trades.<\/p>\n

Tesla stock (ticker: TSLA) dropped 9.7% following better-than-expected second-quarter earnings. Incredibly, it was the same percentage drop as the dip following first-quarter numbers when profit margins dipped following steep start-of-year vehicle price cuts.<\/p>\n

\n

A one-day move isn\u2019t a reason there might be few true bulls. Trading volume is the issue. Tesla stock traded roughly 173 million shares Thursday. The volume-weighted average price, or VWAP, for Tesla stock yesterday was $269.72\u2014so about $47 billion worth of stock changed hands the day following the earnings report. <\/p>\n

That\u2019s more than 5% of the market capitalization of the entire company. It\u2019s more than 6% of the market capitalization excluding stock held by CEO Elon Musk. (He trades less frequently.) The comparable number for
\n Apple
\n stock (AAPL) on Thursday is about 0.4%.<\/p>\n

The earnings report isn\u2019t responsible for the difference. Tesla stock typically trades about 10 times the dollar value of Apple on a given day. (Dollar value is just the number of shares traded multiplied by an average price.) That means Tesla\u2019s entire market capitalization turns over every 20 to 30 days. Excluding weekends, that\u2019s once a month. Apple stock turns over about once a year. <\/p>\n

Another way to say that is the average holding period for Tesla stock is about 25 days trading days, or five weeks including weekends.<\/p>\n

Theoretically, no one holds Tesla stock for more than a month. Of course, there are some long-term holders, but accounting for that means the average holding period excluding Musk and long-term holders is even shorter.<\/p>\n

Tesla\u2019s trading volume, and trading value, are unusual. A strategist asked about the phenomenon didn\u2019t have an answer about what it all means. It just is what it is. <\/p>\n

It appears Tesla \u201cis loved by traders, and Apple is loved by investors,\u201d says Fairlead Strategies founder and market technician Katie Stockton. Technical stock market analysts look at charts to predict what\u2019s coming next and typically deal with lots of traders. <\/p>\n

Tesla\u2019s \u201cbeta\u201d versus the
\n S&P 500
\n is about 1.6 compared with Apple\u2019s 1.1. Beta is a measure of volatility, relative to a market or an index. If the market is up 1% then a stock with a beta of one will be up 1%, too. \u201cHigher volatility [tends] to appeal to short-term investors,\u201d adds Stockton.<\/p>\n

The post-earnings drop showed signs of \u201cupside exhaustion,\u201d she says. In the three months leading into earnings, Tesla stock is up more than 60%. Stockton sees $243 as support for the stock. That would still leave shares up almost 100% for the year.<\/p>\n

One thing excessive trading does is eat away at investors\u2019 potential long-term gains. Even Barron\u2019s<\/em> falls victim to the Tesla trading volume problem. We wrote positively about Tesla stock in January, and we typically have a one-year time horizon for our stock picks and pans. Tesla stock doubled in the weeks following the article, way faster than we expected, and we recommended selling some. Since that call, Tesla stock is up even more. <\/p>\n

Trading around a portfolio position is one way to manage volatility, even for long-term holders. Another strategy for long-term holders is to do nothing and just endure the ups and downs. Over many years, that\u2019s the superior strategy. <\/p>\n

Tesla stock finished down 1.1% Friday at $260.02, down almost 8% for the week. The S&P 500 finished flat and
\n Nasdaq Composite
\n gained 0.2%.<\/p>\n

Write to Al Root at allen.root@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a lot fewer true bulls than investors assume. Just look at how the stock trades. Tesla stock (ticker: TSLA) dropped 9.7% following better-than-expected second-quarter earnings. Incredibly, it […]<\/p>\n","protected":false},"author":1,"featured_media":39006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-39005","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nTesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=39005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=39005\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-22T09:14:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-22T09:14:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690017247_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=39005#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=39005\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Tesla Bulls Say They Love the Stock. Trading Data Suggest That’s Not True.\",\"datePublished\":\"2023-07-22T09:14:06+00:00\",\"dateModified\":\"2023-07-22T09:14:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=39005\"},\"wordCount\":619,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=39005#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=39005\",\"url\":\"https:\/\/ifintechworld.com\/?p=39005\",\"name\":\"Tesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-22T09:14:06+00:00\",\"dateModified\":\"2023-07-22T09:14:08+00:00\",\"description\":\"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=39005#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=39005\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=39005#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tesla Bulls Say They Love the Stock. Trading Data Suggest That’s Not True.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld","description":"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=39005","og_locale":"en_US","og_type":"article","og_title":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld","og_description":"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a","og_url":"https:\/\/ifintechworld.com\/?p=39005","og_site_name":"iFintechWorld","article_published_time":"2023-07-22T09:14:06+00:00","article_modified_time":"2023-07-22T09:14:08+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690017247_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=39005#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=39005"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That’s Not True.","datePublished":"2023-07-22T09:14:06+00:00","dateModified":"2023-07-22T09:14:08+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=39005"},"wordCount":619,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=39005#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=39005","url":"https:\/\/ifintechworld.com\/?p=39005","name":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That's Not True. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-22T09:14:06+00:00","dateModified":"2023-07-22T09:14:08+00:00","description":"The Tesla bull-bear debate is heated, filling up a lot of time on financial and social media. Lately, the bulls have been in command, but there might be a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=39005#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=39005"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=39005#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Tesla Bulls Say They Love the Stock. Trading Data Suggest That’s Not True."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/39005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39005"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/39005\/revisions"}],"predecessor-version":[{"id":39007,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/39005\/revisions\/39007"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/39006"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}