TLDR
- Tesla stock dropped 4.99% to $412.40 on Thursday, falling below its 50-day moving average and approaching its October low of $411.45.
- Retail investors purchased $1.1 billion worth of Tesla shares in the past week and own approximately 41% of available Tesla stock, compared to 25% average for Magnificent Seven stocks.
- Cathie Wood’s Ark Invest sold Tesla shares for four consecutive trading sessions, unloading 70,474 shares worth $30.35 million on Wednesday alone.
- Tesla stock is down 5.7% in November and remains about 12% below its traditional buy point of $470.75 after briefly crossing that level on November 3.
- Retail investors have added roughly $15 billion in Tesla shares year-to-date, making it the second most popular retail stock after Nvidia.
Tesla stock fell over 4% on Thursday to $412.40. The drop pushed shares below the 50-day moving average.
The stock is now approaching its recent low of $411.45 from October 10. Tesla has declined 5.7% in November.
Shares briefly topped $470.75 on November 3 but failed to close above that entry point. The stock is now trading about 12% below that traditional buy point.
Despite the selloff, retail investors continue buying Tesla shares. Smaller investors purchased $1.1 billion worth of stock in the past week according to JPMorgan’s Retail Radar report.
Retail shareholders own roughly 41% of Tesla’s available stock. That’s much higher than the 25% average for other Magnificent Seven companies.
Cathie Wood Reduces Position
Cathie Wood’s Ark Invest has been selling Tesla shares for four straight trading sessions. On Wednesday, her funds sold 70,474 shares for an estimated $30.35 million.
The selling streak began on Friday, November 7, when Ark sold 71,380 shares. Tesla remains the top holding in Ark’s Innovation ETF at 11.96% and in the Next Gen Internet ETF at 9.69%.
Wood’s firm typically buys Tesla stock during selloffs or when shares break below key moving averages. This recent selling pattern marks a departure from that strategy.
Ark Invest maintains a 2029 price target of $2,600 for Tesla stock. The firm estimates that 90% of Tesla’s enterprise value will come from its robotaxi business by 2029.
Without a robotaxi network, Ark’s price target would drop to around $350 per share. CEO Elon Musk recently stated that Austin robotaxis could remove safety monitors within a month or two.
Kimbal Musk, Elon’s brother and a Tesla director, gifted 14,785 shares on November 10 according to regulatory filings. Kimbal has regularly sold Tesla stock over the years.
Retail Investor Activity
Tesla and Nvidia remain the two most popular stocks among retail investors. Smaller investors have added approximately $15 billion in Tesla shares year-to-date.
Nvidia leads with roughly $20 billion in retail purchases for the year. Other popular retail stocks include Meta Platforms, AMD, CoreWeave, Oracle, and Apple.
All these companies are part of the AI data center build-out. Tesla is working on physical AI applications like self-driving taxis and humanoid robots.
The retail enthusiasm has persisted through Tesla’s recent decline. The stock fell 2% to $430.60 on Wednesday.
Coming into Thursday’s trading, Tesla was up 7% year-to-date and 30% over the past 12 months. The stock had fallen 3.4% since Tesla’s November 6 annual meeting.
At that meeting, shareholders approved Musk’s trillion-dollar 2025 pay award by roughly three-to-one. Retail shareholders played a large role in that vote.
Tesla stock has a 72 Composite Rating out of 99. The stock also carries an 86 Relative Strength Rating and a 46 EPS Rating.
Shares are forming a base with a buy point of $470.75. Investors could also view the handle as a separate flat base.
The stock briefly retook its 21-day moving average on Monday with a 3.7% jump to $445.23. That came after a 5.9% drop the previous week.
On Thursday, Tesla stock closed at $412.40, continuing its November slide and testing support levels established in October.
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