US Retail Investors' Love for Tesla... "Achieve First-Ever No.1 Net Buying"

Likely to Achieve No.1 Net Buying Surpassing SPY
"Thanks to Tesla's Innovation and Musk's Fame"

Electric vehicle company Tesla is expected to be the most net purchased stock by individual investors in the United States this year. This is the first time Tesla has ranked first in net purchases.

Elon Musk, CEO of Tesla. [Image source=Reuters Yonhap News]

On the 20th (local time), U.S. economic media CNBC cited market analysis firm Vanda Research, reporting, "As of the 7th of this year, Tesla's net purchase volume reached $45.4 billion (approximately 59.197 trillion KRW), making it the company that attracted the most funds from individual investors in 2023."

Until 2019, Tesla was not even included in the top 20 net purchased stocks by individual investors surveyed by Vanda Research. Tesla was only added to the S&P 500 index three years ago and ranked second in net purchases last year, placing it within the top five. The net purchase volume of Tesla by individual investors last year was $16.8 billion (approximately 21.9055 trillion KRW). This indicates a sharp increase in interest from individual investors in Tesla. Christopher Schwarz, a finance professor at the University of California, Irvine, told the media, "The increased preference for Tesla among individual investors may be related to the stock price rise in 2023," adding, "Tesla's stock price more than doubled in 2023 after plunging 65% in 2022."

He continued, "When Elon Musk, Tesla's CEO, acquired X (formerly Twitter), mentions of him increased, and related articles also rose, leading individual investors to rely on Musk's fame as a factor in increasing their investments," explaining, "Individual investors tend to invest in companies that attract their attention, are familiar, and are perceived to be leading current trends."

In other words, individual investors seem to believe that Tesla possesses innovative technology and are buying Tesla stock bolstered by Elon Musk's fame. Additionally, concerns about climate change and the frequent presence of Tesla electric vehicles on the streets are factors encouraging individual investors to invest in Tesla.

Craig Irwin, an analyst at Roth MKM, said, "Uncertainty caused by intensified competition in the electric vehicle market could actually benefit Tesla," analyzing, "Although Tesla is experiencing a slowdown in growth and will face challenging situations due to increased competition in the electric vehicle market, the enthusiasm of individual investors for Tesla is unlikely to wane."

Meanwhile, the next most net purchased stock by U.S. individual investors is the SPDR S&P 500 ETF (SPY). SPY is the largest ETF tracking the S&P 500 index, with a net purchase volume of $35.8 billion (approximately 46.4863 trillion KRW) this year. Last year, Tesla was ranked second in net purchases by individual investors, behind SPY. The net purchase volume of SPY by individual investors last year was $27.7 billion.

This content was produced with the assistance of AI translation services.