2.25% so far today. How does this seem to always happen?
In addition, existing investors are very very deep into Tesla now, and don't want to lose.
The sandcastle is quite fragile so one of the best strategy for everyone (funds and Musk) is to keep buying more, no matter if the news are bad or not. It works, until other people disagree with you, but so far, nobody is interested into losing that game.
I actually short Tesla just enough to offset my long positions that come as part of my regular ETFs.
I buy multi-year put options, there's some fuzziness around the appropriate strike price and number of options for a given long position, but effectively I'm paying the option premium to limit my downside risk.
> Do you do that for your long non-ETF positions too?
No, my non-ETF positions are negligible.
Or maybe it's all because of index funds. What bothers me most about that is that if TSLA tanks, so does a big chunk of the S&P 500 and therefore my 401(k). Hrmph.
Like security backed bonds but on a company scale.
With SpaceX having loads of government contracts, they become more immune to failure via odds of a bailout.
Either that or eventually Tesla drops to ~$50/share, but since that would hurt the Musk ego, the buyout is the much more likely outcome.
On the other hand, after those few people sell, the stock won't fall anymore, so the people that were waiting for it to stop falling before they buy make their move.
That's very common, but not reliable for you to make a profit on it. And anyway, those short-term changes are mostly meaningless.