The Tesla Stock Wild Ride Explained


The Tesla stock has been climbing steadily higher and higher in recent times, and it is unclear when it will begin to level out again. Tesla stocks were expected to continue going downhill, but in a sudden turn of events, Tesla stock started to climb like it never had before.

The Tesla stock wild ride refers to the period of time in which the Tesla stocks have climbed higher and higher astronomically. Tesla took its stocks from nearly nothing to one of the highest-ranking stocks due to a large number of different factors.

Keep reading to learn everything you need to know when it comes to the Tesla stock wild ride, what happened, why it is happening, and what such a wild climb in Tesla stock means to investors who have their money in this stock.

When Did the Tesla Stock Wild Ride Start Happening?

The Tesla stock ride has been going on for a good while now. In all actuality, Tesla’s stock has always had a bumpy and wild ride. The most recent of the Tesla stock wild rides, and by far the wildest, is the one that started in mid-2019. This stock wild ride has left some investors concerned about what it could lead to.

June 2019 is around the official time that investors say that the Tesla stock wild ride began. This was right after the Tesla stock had started to dip down in its value, and there was a good chance that it would continue to dip. However, just a few days later, people become more optimistic about the future of Tesla.

On June 6th, just three days after the lowest recorded stock price day for Tesla, Tesla stocks had climbed all the way back over the $200 mark. In only three days, Tesla had completely turned around their stocks, and they have been riding the climbing stocks ever since.

It has started to calm down slightly, but there is a good chance that the Tesla stock wild ride will not end until sometime in 2021 and possibly even 2022. As Tesla continues to make strides in technological advancements, its stocks continue to climb, and the wild ride will continue to occur.

What Are the Factors Causing the Tesla Stock Wild Ride?

The Tesla stock wild ride has been caused by quite a few factors, most of them related to the Tesla investors themselves. The investors have been encouraged though by the achievements of Tesla recently, including several new technological advancements that came out in recent years.

If it was not for Elon Musk pushing the Tesla workers to achieve the levels of work that they do, it is unlikely that the stock wild ride would have ever occurred. With how much the Tesla stock had decreased, it would have taken a miracle of some sort to bring it back to life, and a miracle is what happened.

Here are the main factors that helped cause the Tesla stock wild ride and the factors that are allowing it to keep going for as long as it has. As long as these factors remain in play, it is unclear how long this wild ride could continue for Tesla and its investors.

Tesla Investors Have a Large Amount of Optimism

One of the biggest reasons that the Tesla stock wild ride started was because of a sudden increase in the optimism of the Tesla investors. There are several reasons why their optimism climbed suddenly over just a couple of days and caused the Tesla stock to begin the wild ride of the decade.

The reasons for the increase in optimism are:

  • Many of the investors in the Tesla stocks are young investors, and they believe that Elon Musk will be the next mega tech giant. With how things have been going with Elon Musk’s work, it is quite possible they could be right, though their enthusiasm could cause potential future problems.
  • The investors have no idea what Elon Musk could come up with. Whatever it is, they want a piece of it. Thus, they will continue to purchase large amounts of stocks in Tesla, causing the wild ride to continue the way it has been for the last several years.

With how much Elon has already changed several technological markets, it is easy to see why so many investors are optimistic. He is renovating much of what has been known about several different technological fields. There is a good chance that, unless something significant happens, he will continue to do so.

Tesla Investors Have a Large Amount of Faith

Right alongside the Tesla investors’ optimism is a lot of faith in Tesla and Elon Musk. This faith they have in the company and Elon Musk is what has been pushing the Tesla stocks to rise so high and so quickly. As long as the investors have faith, the Tesla stocks will remain on top in this wild ride.

The Tesla investors all have faith that Elon Musk will continue coming up with newer and better technologies that will change how much of the world works. As long as Tesla and Musk keep making these large differences globally, there is no doubt that the stock wild ride will continue.

Not only that, but the investors who invested in Tesla early on have helped other investors gain faith in Tesla. The more investors that back Tesla, the more faith that other potential investors have in Tesla, and this continues to drive the stock wild ride.

Tesla Investors Want to Get in on the Tesla Bandwagon

The lure of Tesla’s future also helps keep bringing in more and more investors while keeping the wild ride going. Everybody wants to have the opportunity to jump in on the Tesla bandwagon that has started because there is the chance of making millions off of Tesla’s stocks if things continue going the way they have been.

People see how all the people that are making large amounts of money off of the Tesla stocks, and they want to be the next person to strike it rich with Tesla. This creates the wild ride that is currently happening for Tesla, and if it continues as such, there is a good chance that things might go poorly in the future.

Not everyone can become a millionaire off of the Tesla stocks, but it may be a while before people realize that. Once they do, though, the Tesla stock wild ride will end, and either the stocks will even back out, or the Tesla stock could take another hit like before the wild ride began.

Hopping onto the Tesla stocks’ bandwagon may seem like a great idea at the moment. Once the wild ride ends, there will be those who already made their money off the stocks and those who were unfortunate enough to get in too late. Only time will tell what the bandwagon-hopping will do fully to the Tesla stocks.

Tesla Continues Expanding the Boundaries of Technology

In recent years with the Tesla stock wild ride, one of the biggest factors in keeping it going are the advancements that Tesla has achieved in the technology field. There have been many technological advancements, but three, in particular, have made the most considerable impact on the Tesla stock wild ride.

The Technological Advancements:

  • The Model 3
  • The installation of grid-sized solar batteries
  • The new Tesla Roadster

The Tesla Model 3 car is one of the biggest technological advancements that helped propel the Tesla stock wild ride. Even though the Model 3 could revolutionize the automobile industry, investors in the Tesla wild ride could lose a lot of money if the Model 3 falls apart under the amount of spending going into it.

Tesla also installed several grid-sized batteries and quickly, which helped promote the solar power capabilities that Tesla has. With such large promotions of the power that the solar panels that Tesla creates can produce, it is no surprise why this piece of technology has played a large part in the Tesla stock wild ride.

The third major piece of technology that made an impact on the Tesla stock wild run was the new Roadster. Musk has stated that, once it is completed, it will be the fastest car to exist. It will be able to accelerate from 0 to 60 miles per hour in just 1.9 seconds, which in and of itself makes it an impressive piece of technology.

Tesla Is Set to Have Another Great Year in Profits

Tesla has had a love-hate relationship when it comes to profits, but with recent investments and business ventures, they are set to have a good year. Since one of the chief things that investors will look for is good profits in a company, the reasonable profits of Tesla are helping draw in the investors.

The better the profits of Tesla are, the more investors will jump onto the Tesla bandwagon, which is helping push along the Tesla stock wild ride. The more investors that Tesla receives, the larger its profits will be, and the stock wild ride will continue to go on until it finally burns out.

However, just because the company is having a good year in profits, that does not promise that it will always remain this way. The wild ride with the Tesla stocks is happening because people believe that the company will continue to do well, meaning that they will make a large amount of money off their stocks.

If you are considering getting into the Tesla stock wild ride, just keep that in mind when making your decision. The company is doing well now, but it has done poorly in the past and has cost its investors millions of dollars. Just keep that in mind when considering getting on the wild ride with Tesla.

Tesla Split Its Stocks Recently

Another large factor in the Tesla stock wild ride was when Tesla declared that they were splitting stocks in August of 2020. The stocks were not just split in half but were instead split five ways. This still left each stock worth an incredible amount, however. Each stock after the stock was worth nearly $500 apiece.

Splitting the stocks does not affect the investor in any way, so the investors still kept all their large amounts of money placed in Tesla stocks. This turned out to be both a winning tactic and a losing tactic for Tesla in terms of its investors and the worth of its stocks.

It was a win for Tesla, but it also came at a cost.

  • It made the stocks more accessible to more people, allowing more investors to place their money into Tesla.
  • However, when Tesla split their stocks, they did suffer a loss from this stock split.
  • Tesla stocks began to decrease in value and went down by about 20 percent after the split.

This loss came from the fact that many investors were expecting to cash in after the split and make a large amount of money selling their stocks.

What the Tesla Stock Wild Ride Means for Short Sellers

The Tesla stock wild ride has been a matter of interest for all investors, but it especially affected short sellers. Short sellers are people who want the value of a stock to drop. That way, they can turn a quick profit off of the fallen stock. Ironically, this has helped drive the prices of Tesla stocks up in the recent wild ride.

For some time, things were working out for the Tesla stock short-sellers, as the prices of the stocks were dropping, but then the value of the stock began to go up. To try to make it drop again and thus either make a profit or at very least cut back on their losses, they bought up more and more of the stocks to drive it up.

By driving up the prices, though, the short-sellers only caused more people to get into the stock, which continued to drive the stock prices up. The more they tried to cut back on their losses by getting the stock to drop in price, the more they caused the stock to increase in value.

The short sellers have since then lost a considerable amount of money on the Tesla stocks thanks to the price of it climbing and climbing. There is the possibility of it crashing down if it gets too high, but that is becoming more and more unlikely, especially with its possible admission into the S&P.

Tesla And The S&P

Tesla is being included in the latest S&P index, which is one of the biggest things that will be affecting the Tesla stock wild ride. This was decided back in December of 2020 and is one of the most significant achievements that Tesla has accomplished when it comes to its stocks.

The S&P is a big deal when it comes to a company’s stock, and getting onto the S&P index will probably prove to be another great outcome for Tesla in terms of its stocks. However, there may be some negative effects that come from Tesla’s inclusion into the S&P index.

How Entering the S&P Will Affect the Stock’s Wild Ride

Very few factors have affected the Tesla stock wild ride like this, but while this inclusion has been good for Tesla, there is the chance that it could finally slow down the wild ride. Causing the wild ride to slow down will be one of the best outcomes for Tesla, as it may save them from a stock bubble pop.

The Tesla stocks increased over 60 percent after it was announced that they would be included in the latest S&P index. The wild ride had already caused Tesla’s stock to increase by nearly 400 percent, and for a period after the S&P announcement, it climbed up to almost five hundred percent.

It has started to decrease slightly now, but the wild ride is still continuing. Even though it has some signs that it could finally be slowing down, it is unclear whether it will anytime soon. If it does start to slow down, though, the effects that would come of such a thing are still unclear as well.

Slowing down the wild ride could be a good thing, but it could also turn into a deadly downslide for the Tesla stock. It has plummeted before, and coming down off its wild ride could cause the stock to plummet again. It is not likely that this will happen, but it is still something that should be kept in mind.

The Tesla Stock Wild Ride Has Been Fast

One of the biggest things that have been noted about the Tesla stock wild ride is how fast the entire thing has been happening. Such a fast, wild ride has not been seen before with the Tesla stocks, and even amongst the investing world itself, this is far faster than many wild rides that have happened before.

The speed at which the Tesla stock wild ride has been going has been concerning to a fair amount of investors, and when you see the numbers, it is no surprise. Tesla’s stocks have increased in massive leaps and bounds, which in any other case would be a sign that you should not invest.

  • Tesla’s stocks have increased by over 400% in the past year, which is one of the highest stock climbs seen in recent times. For a stock that had plummeted to nearly nothing, this was a massive turn-around in such a short amount of time.
  • The Tesla stocks have skyrocketed over 700% total over the last five years. They have had their ups and downs, but overall it has been a steady climb until the last year. Once 2019 and 2020 hit, the Tesla stocks saw their rise to the top in a very short period of time.

Tesla’s Stock Wild Ride Has Made the Stock Overvalued

One of the biggest problems that have come from the Tesla stock wild ride is it has caused the stock to become overvalued. The fact of it becoming overvalued has been drawing many investors’ attention, many of whom have spoken out against it. However, not many people are paying attention to that.

With all the other factors at play, it is not easy for many would-be or current investors to listen to those who are saying that the Tesla stock is overvalued. All these investors see is that Tesla seems to be doing well and that the stocks are going higher and higher in price. This seems like a good thing, but it is not in the long run.

The stock did not start off as overvalued and did not hit the overvalued point till last year, when the wild ride hit its frenzy. Since then, the prices have kept climbing, and the stock continues to become more and more overvalued. Once the wild ride ends, there is a good chance that the stock will collapse upon itself because of its overvalue.

Overvalued stocks rarely stay around for long because once people realize that the stock is not worth as much as it is being made to seem, they will start selling. Once those people start selling their stocks, it will be a downward spiral for Tesla and their investors.

The Bubble Created From the Overvalued Tesla Stocks

The final thing that the Tesla stock wild ride has caused is that a stock bubble has been created by the stock’s overvaluing. Overvaluing the stock comes with its own set of problems and does not always lead to the creation of a stock bubble. However, Tesla stock is so overvalued that a stock bubble is likely unavoidably at this point.

The bubble will continue to grow bit by bit until, at some point (most likely soon), the bubble will pop. Once the bubble pops, there is a high chance that the Tesla stocks will decrease in worth. How drastic the drop will be is still uncertain. The drop will have to come eventually, though, as no stock can go on like this forever.

The problem comes with knowing when it will happen and how bad it will be. It could possibly only be a small drop, bringing the stock back to a more manageable level. However, it is also likely that will be a drastic drop, which could potentially be the end of Tesla unless it manages to make good on its future plans.

The Tesla Stock Prices Since the Wild Ride

The Tesla stock prices have had a bumpy route throughout the entirety of the wild ride that has been occurring. They have gone up and down, but over the past year, they have been steadily climbing upward with no end in sight. These prices have gone up by over 400 percent, making Tesla stocks one of the most expensive for their industry.

  • Only a year ago, Tesla stocks were only worth around $60.
  • Now those same stocks are around $700 per stock.
  • These prices are only the average, though, as the price for Tesla stocks have been fluctuating quickly every single day since the wild ride began.

The stocks have exceeded the “overbought” range several times now, which would typically mean that a stock is getting ready to drop down again in price. However, this is not the case with the Tesla stocks, as they continue staying at high prices when they are not growing in price.

No one can agree on how much the stock should be worth. There are some who say that the stock is worth the amount that it is currently going for. Other people believe that the stock is worth what it was worth about a year ago, and then there is everyone else who thinks the stock is worth somewhere in the middle.

Is It Worth Hopping onto the Tesla Stock Wild Ride?

After learning all this about the Tesla stock wild ride, you may be wondering if it is worth getting into it. Investing in Tesla overall is still a great idea. It is a revolutionary company pushing the bounds of the technological world, and that can not be forgotten regardless of how overvalued the stock itself may be.

However, if you are going to get into the Tesla stock wild ride, you need to remember that the stock is pushing a dangerous zone in the investing world. If the stock slows down, though, after the acceptance into the S&P, the possible stock bubble will be averted, and the stock will balance itself out to a reasonable level.

Do not invest heavily in the company unless you have the money to spare because the wild ride is not over yet, and if things do not balance out, it could end badly. Use common sense when considering the stocks, and you will do just fine in regards to the Tesla stock wild ride.

Conclusion

The Tesla stock wild ride has taken investors and the stock market for a bumpy ride in recent times. It has made itself worth more than anyone could have ever predicted, but it has also set itself up for possible stock collapse. Overall, the Tesla stock wild ride has been both good and bad for Tesla as a company.

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Greg

Hi, I'm Greg. My daily driver is a Tesla Model 3 Performance. I've learned a ton about Teslas from hands-on experience and this is the site where I share everything I've learned.

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