By Michael Elkins
According to data from Vanda Research, as of Wednesday, Net daily purchases of Tesla (NASDAQ:TSLA) shares by individuals have fallen by about three-fourths from a peak of $436 million on March 1. Retail traders whose purchases have helped push the electric-vehicle maker‘s stock up over 50% in 2023 are pulling back this month amid disappointment over a recent investor day and concerns over the health of the economy.
“After a brief period when Tesla’s stock price looked to be offering decent value, the shares seem to be back in the realm of expensive, and retail investors have stepped back,” said analysts at Finimize Ltd., an investing insights platform owned by Abrdn.
Enthusiasm has waned among mom-and-pop investors in the wake of the March 1 investor day that lacked specific details on a much-anticipated new vehicle. Since then, the shares have dropped more than 6.5%, compared with a 1% decline in the S&P 500 Index and the Nasdaq 100‘s roughly 6% gain. Caution has also been fanned by fears of problems in the banking industry spreading following the collapse of Silicon Valley Bank and Signature Bank.
Wall Street has turned more cautious after the early rally as well, with at least three analysts downgrading the stock just this month.
Tesla’s “valuation now leaves less room for disappointment,” Berenberg analysts wrote while lowering their recommendation to Hold from Buy early this month.
Shares of TSLA are down 2.04% in mid-day trading on Friday.