Tesla’s November Slide Tests Retail Investors’ Dip-Buying Strategy
Tesla shares tumbled 13% in November, closing at $395.04 amid a broader market reversal. Retail investors piled into the stock during its decline, mirroring their aggressive positioning in tech names like Nvidia—a strategy that faltered as Thursday's selloff erased gains.
The automaker faces existential financial stakes: a Delaware Supreme Court ruling on Elon Musk's voided $56 billion pay package could trigger a $26 billion profit hit if overturned. Year-to-date performance remains negative (-2%), though shares have rallied 84% from April lows.
JPMorgan observes retail traders rotating capital from defensive sectors into battered tech stocks. This pattern held until November's volatility surge, with Tesla's intraweek swing from $428.94 highs demonstrating the risks of momentum chasing.
