$8bn bet: Why retail investors are sticking with Tesla

Retail traders, many of whom are staunch supporters of Elon Musk, have poured over $8 billion (R146 billion) into Tesla shares over the past 13 consecutive trading sessions. This marks the largest retail buying streak since at least 2015, according to JPMorgan Chase trading data.

The surge in purchases comes even as Tesla’s stock price has fallen by 17%, wiping out more than $155 billion in market value. That kind of loyalty is rare — and deeply emotional.

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Why are individual investors still buying?

These retail investors are betting on Musk himself. The Tesla CEO’s passionate online fanbase continues to rally on social media platforms like X (formerly Twitter) and Reddit.

Even as Tesla’s global sales tumble, fans believe the recent dip is a rare chance to “buy the dream” at a discount. “Very happy to get Tesla at $225,” wrote one investor. The stock closed at $248.66 on Friday, up 5.3% from the previous day.

Nicholas Colas, co-founder of DataTrek Research, said this unwavering belief stems from Tesla’s past success in creating self-made millionaires. “People don’t forget that,” he noted.

Tesla’s mounting challenges

Tesla’s current troubles are extensive. Once bolstered by optimism following Donald Trump’s election win, its shares have now fallen over 50% since their December 17 high; the second-largest drop on the S&P 500 this year.

Worse, global demand is weakening. Sales are plunging across key markets like Germany, France, China, and Australia. Political backlash against Musk, now rumoured to be heading the proposed Department of Government Efficiency, has tainted Tesla’s brand.

In Europe, showrooms have been vandalized, and protesters have attacked charging stations. Analysts, including Morgan Stanley’s Adam Jonas, have slashed sales forecasts, citing aging models and rising competition.

Still, Jonas maintained his “buy” rating, arguing Tesla’s long-term success depends on breakthroughs in AI and robotics. Daniel Ives of Wedbush echoed that sentiment, praising Musk’s internal leadership and vision for autonomous driving.

For Tesla’s most devoted fans, none of this seems to matter. As Colas puts it, “They don’t care about valuations. They believe in Elon.”