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Tesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: Barclays

February 23, 2021 10:05 pm
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Tesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: Barclays

Tesla Inc (NASDAQ:TSLA) stock movements and the Reddit investment discussion board r/WallStreetBets have a "real," even if "nuanced," connection, according to analysts at Barclays.

What Happened: The movement of the automaker’s stock has a correlation with mentions on r/WallStreetBets, the same Reddit forum at the center of the GameStop Corp (NYSE:GME) short squeeze, Barclays said in a note, Gizmodo reported.

See also: How to Invest in Tesla Stock

“On the autos team, we have painfully learned that social media memes can matter more for TSLA share performance than actual financial metrics, fundamentals or (dare we say) valuation,” the analysts at the British bank wrote, Gizmodo noted — citing a CNBC report.

“There is a positive correlation between the number of WSB submissions exclusively citing TSLA, and the performance of the stock.”

Why It Matters: Many Tesla investors ascribe any negative news related to the company as the work of short-sellers, noted Gizmodo. 

Tesla stock has plummeted nearly 22% since it touched $900 in late January. The downwards momentum in the stock is due to the company’s Bitcoin (CRYPTO: BTC) investment and demand concerts, as per Wedbush analyst Daniel Ives. 

See Also: Tesla's $1.5B Bitcoin Investment 'A Sign Of Desperation' From Elon Musk, Says Analyst

As of press-time, Tesla had a comment volume of 2,228, making it the second most discussed company on r/WallStreetBets, according to SwaggyStocks.com.The most discussed ticker was SPDR S&P 500 ETF Trust (NYSE:SPY). 

Price Action: Tesla shares rose nearly 2.5% in the after-hours session to $716.50 on Tuesday after closing the regular session 2.19% lower at $698.84.
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.

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