So who's buying the TESLA stock?

I was asking a question in my previous post on Who's buying the TESLA stock today?

While I probably wont find an exact answer to the question, I do think a lot of buying is coming from large speculators like hedge funds and to a certains extent from retail gamblers.

I do read 2-3 economic blogs and this weekend I did came across this blog post which mentions the TESLA stock.

So who are the buyers of TESLA stock?

• Retail investors via ETFs of course
• Big speculators who are buying and selling hyped stocks
• In the above blog post a chinese hedge fund is using a strategy which buys today a couple of hot stocks and sells them tomorrow for a profit
• They operate on the chinese stocks (so not related to TESLA stock)
• That seems to work for them as they made a little bit above 100% out of that strategy this year. Wow! That is amazing giving the difficult conditions we have in the economy and the stock market volatility!
• I'm sure there are similar large speculators operating in the US markets
• There are also Las Vegas gamblers like the guy in the above blog post
• Out of job and no income at the moment (probably because of the COVID crisis)
• No understanding of how the products he's buying/selling work
• He's gambling with Apple and Tesla stocks successfull

Are there other investor profiles buying the TESLA stock bubble? Probably yes (banks, short term traders, robots operated by hedge funds, etc.)

A couple of more questions:

• Where from is the money coming? Savings? Borrow some at the bank to speculate?
• Are central banks actions for something? I see many pointing the finger in that direction, but to what extent?
• Why all these people behave with no worries at all regarding their money?
• Does it matter where from the money is coming?

Well, I'm not a bubble expert but I did see a few in the last year and talked to people who were invested in the middle of a bubble like Bitcoing for instance. They will find all sorts of arguments (either complicated, stupid, funny, whatever) to convince you they are having it right and you dont get it.

These of course are signs to be cautios regarding the market you're looking at; but you're looking like a fool and you're a bit alone against everybody. 

However, when the bubble popped like it was the case for the Bitcoin, the guy swears I will never touch that thing again; unfortunately it was too late for him.

There is another thing which manifests in a bubble; the supporters of the bubble look very smart and the opponents stupid. Not liking TESLA today makes you look like a fool.

I will look shortly at the TESLA products, how much money it makes from those and how that compares to competition.

In the meantime, another intersting week for the TESLA stock is ahead of us. Will they pump it higher? 😎

TeslaStock watcher