Tesla stock has recently hit new lows, but U.S. Congressmen are reportedly not selling.
Despite Tesla’s stock (NASDAQ: TSLA) having an incredible first half of the year, it has taken some significant hits over the past few months and is now nearing its 52-week low. Nonetheless, while retail investors may claim the end of the world, Congressmen have reportedly not sold and may be holding their position on the stock.
According to the Congressmen stock tracking site CapitolTrades, no representatives have bought or sold any Tesla stock this entire month. Indicating that not everyone is bearish on the electric vehicle maker. The tracker includes trades from spouses of Congressmen, trades from mutual funds, and many other avenues where legislators may attempt to buy or sell stocks without public attention.
This isn’t to say that nobody is selling Tesla stock; quite the contrary. Only last month, Tesla CEO Elon Musk sold nearly $4 billion worth of stock in the automaker, and retail investors have joined him. In fact, since Mr. Musk’s acquisition of Twitter earlier this year, many notable figures have proclaimed that they are either selling their Tesla vehicle or selling Tesla stock in protest.
It is unclear what has changed that has pushed Tesla stock towards all-time lows, especially considering the company is likely headed towards a successful final quarter of the year, delivering a record number of vehicles and possibly achieving its 50% growth target. Furthermore, Tesla has expanded its product offerings in a few key markets, delivering Model S and Xs to Europe and even expanding to new markets like Thailand and Taiwan.
While some have pointed to possible issues at Tesla’s Shanghai production facility as a reason to divest, in actuality, its unclear what effect any production challenges in China have had on the automaker as a whole.
Other notable voices on trading have contradicted the bearish movement of the stock. Both Forbes and the Motley Fool have outlined reasons for customers to buy or hold their positions in the company. Both cite the company’s solid financials, its continued success delivering products, and its bright outlook in new product categories such as the Tesla Semi.
Another comforting fact is that Tesla is far from the only stock that dropped significantly in the year’s final quarter. Tech stocks generally, a category Tesla is often included in, have all suffered. Meta is likely the starkest example of this, as the stock has fallen over 60% from its all-time high.
Some analysts have pointed to the possibility of a recession in the coming months as a reason many investors have cold feet. And in fact, even Mr. Musk has agreed, stating on Twitter that a recession may be imminent, with recovery lasting until 2023 or 2024.
For those hoping that Tesla stock will be making a full rebound in the coming days or weeks, there isn’t clear evidence that that will occur. However, as shown above, there are plenty of reasons to be optimistic, and it’s clear why so many are taking the opportunity to “dollar cost average” their position. Eyes will be on Tesla stock and the economy in the coming weeks and months as many hope to avoid a recession or “hard landing.”
William owns stock in Tesla and a wide range of other automakers.
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