Reuters | Nov 25, 2020 20:10
By Noel Randewich
(Reuters) - If you traded a stock in the past week, there's a fair chance it was Tesla.
Shares in the electric car maker led by CEO Elon Musk rose almost 3% on Wednesday and have now surged 40% since Nov. 16, when it was announced Tesla would join the S&P 500 in December. Investors rushed to buy shares ahead of index funds that will be forced to acquire over $50 billion of its shares.
One of Wall Street's most loved - and hated - stocks, Tesla was already the U.S. stock market's most traded companies by average daily value, but trading has surged in recent sessions, along with Tesla's stock price.
"It's been crazy. Since Tesla's (announced) inclusion in the S&P, you've had a lot of managers out there that didn't own enough of it having to buy more," said Sahak Manuelian, managing director of trading at Wedbush Securities, in Los Angeles.
Retail investors using apps like Robinhood are also responsible for much of the recent volume spike, Manuelian added.
GRAPHIC: Tesla is Wall Street's most traded stock, https://graphics.reuters.com/USA-STOCKS/TESLA/xegpbqwawvq/chart.png
Traders bought and sold an average of nearly $26 billion of Tesla shares per session over the five days ending on Tuesday, accounting for almost 8% of all stock traded on U.S. exchanges, according to Refinitiv data. That is more than the combined value of trades in Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL) over the same period.
At about halfway through Wednesday's session, traders had exchanged $20 billion worth of Tesla shares, according to Refinitiv.
Over the past year, Tesla has averaged over $16 billion a day in trades, followed by Apple, at about $14 billion, according to Refinitiv data.
Trading in Chinese electric vehicle maker NIO Inc has also surged in recent weeks, with its shares nearly doubling in November.
Including NIO, trading of stocks in the nascent electric vehicle industry reached an average of $38 billion a day in the past five sessions, accounting for 12% of all trading on U.S. exchanges. By comparison, traders in the same period bought and sold each day about $8 billion worth of oil and gas stocks including Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX).
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.