CMB Stock News Of The Day 📈📉📈📉📰📰🗞️🗞️

"Retail investors are facing significant losses because they continue to purchase Tesla stock during price drops." 🚨🚨🚨

Retail investors have been relentlessly pouring money into Tesla, the S&P 500's biggest loser of 2025 so far, but this strategy has proven to be a resounding failure. According to JPMorgan, these traders have snapped up a staggering $7.3 billion worth of Tesla stock over 12 consecutive days, marking the most aggressive buying spree in over ten years. However, during this same period, Tesla's stock price has plummeted by 17.1%, with shares trading at $232.80 after a 1.30% drop.

The electric vehicle giant, led by Elon Musk, has been battered by a series of setbacks. Insiders have been dumping their shares, analysts have slashed delivery forecasts following disappointing early-year sales, and competitors have made significant strides in autonomous driving technology and EV charging infrastructure. To top it off, public opinion of the Tesla brand has taken a hit.

JPMorgan's quantitative strategist, Emma Wu, noted that retail traders have funneled nearly three-quarters of the $8.3 billion they’ve invested in individual stocks over the past week into the "Magnificent 7" group, with Tesla and Nvidia (trading at $118.99, up 1.25%) leading the pack. However, these momentum stocks, especially those tied to artificial intelligence, have faced intense selling pressure recently.

Wu estimates that retail investors have lost 7% year-to-date, far worse than the S&P 500's 3.3% decline, with most of the damage occurring in March as they doubled down on tech stocks. She pointed out that heavy retail buying during downturns is a recurring pattern. Over the past four days, their net purchases have exceeded $2 billion daily—a threshold crossed far more often in "down" years like 2022 (10 times, notably during the Russia-Ukraine conflict in February) and 2025 (already 16 times) than in "up" years like 2023 and 2024 (just 4 times combined). In fact, the correlation between S&P 500 returns and retail buying spikes to 60% in tough years like 2022 and 2025, compared to a mere 20% in stronger years, underscoring their "buy-the-dip" obsession.

Tesla's woes are stark: it’s not only the S&P 500’s worst performer of 2025, down 41.6% year-to-date, but it has also shed 34.6% since the index hit its record high on February 19. Clearly, piling into this sinking ship has been a disastrous move for retail traders.