Tesla’s Retail Chatter Spikes As Stock Eyes Third Straight Session Of Losses

Tesla, Inc. shares fell over 5% in premarket trading Friday, setting the stage for a one-week low and marking the third consecutive session in the red. If losses persist, it will be the company’s worst streak since late November.

On Stocktwits, Tesla remains the most-followed symbol with over 987,000 watchers. 

Message volume surrounding the EV giant has surged in recent months, coinciding with an 86% rally in the stock during the same period. 

Much of the buzz has been linked to Donald Trump’s 2024 presidential victory, as Tesla CEO Elon Musk emerged as one of Trump’s key supporters. 

Musk has reportedly been appointed to co-lead a federal department focused on improving government efficiency, a development seen by many as advantageous for Tesla, particularly in areas such as self-driving car regulations.

However, some caution is brewing among retail investors and analysts. 

Concerns over potential overvaluation, a disconnect with fundamentals and risks tied to the incoming Trump Administration’s stance on EV policies have cast a shadow over Tesla’s prospects.

The impact of the Federal Reserve’s slower-than-anticipated easing measures for next year has also rattled the stock over the past two sessions.

Adding to the bearish sentiment is news that Tesla is rolling out an over-the-air software update to fix tire pressure monitoring issues in nearly 695,000 vehicles in the United States, according to the National Highway Traffic Safety Administration.

TSLA sentiment and message volume Dec 20 premarket as of 8:15 am ET | source: Stocktwits

On Stocktwits, sentiment for Tesla has shifted to ‘neutral’ from ‘extremely bullish’ a week ago, reflecting growing cautiousness. 

While some optimists anticipate a rebound to near-record highs, skeptics remain wary of Musk’s association with Trump, as well as falling sales in select regions.

Despite the recent downturn, Tesla shares are up more than 74% year-to-date, significantly outperforming benchmark indices.

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