Dear clients,
Tesla has overtaken Apple as the most popular stock among retail investors in 2022, according to research firm Vanda. A large decline in the price of the electric car maker led to a surge in acquisitions.
Cumulative net retail purchases of Tesla shares are up 424% to $15.41 billion this year from $2.94 billion in 2021. That’s higher than Apple’s $15.21 billion, up 18% from $12.85 billion in 2021.
Tesla continues to maintain a fairly broad reach, with shares accounting for about 11% of the average retail portfolio. Investment in Tesla dwindled when the company did a 3-for-1 stock split in August, but it has since outperformed the iPhone maker.
Elon Musk’s actions as CEO of Twitter damaged the stock quite a bit. Tesla shares are approaching a 60% drop in 2022 with their worst performance since their 2010 listing. YTD losses outpace the S&P 500’s 18% and Nasdaq 100’s 31% decline. In turn, Apple shares lost 23% in a year.
According to experts, the situation may change after Musk transfers leadership of the social network and refocuses on the company.
In general, Tesla, Apple and other tech giants have suffered this year due to a sharp rise in borrowing costs. The Fed continues to raise interest rates and investors worry about a looming recession.
What future holds is still unknown, but with a drawdown bonus 123%, your account is secured.
