Observations on the Volatility of Tesla Stock
Overview of Tesla Stock VolatilityTesla Inc. is known for its unique and forward-thinking products, especially its electric vehicles that are changing modern motor transportation. With that in mind, it makes sense that the stock market is closely watching every move Tesla makes with its stock market trading and how it impacts the overall market. Recent Stock PerformanceTesla stock has seen tremendous volatility over the past few months as the company’s stock price has experienced both highs and lows. On April 2, 2021, the stock hit its all-time highest value at $900 per share. This was followed by six days of losses, reaching its lowest value on April 8 at $672. However, the stock has since recovered and is currently trading at around $780 per share.Reasons Behind the VolatilityTesla’s stock volatility can be attributed to a variety of factors, both internal and external. On the internal side, the company’s performance and news announcements have had a direct impact on the share price. A few upgraded vehicle models and positive product reviews, for example, have seen the stock value rise.Externally, Tesla has been affected by the broader market’s sentiment, with large market players influencing the stock price. Recent news of a possible semiconductor shortage has seen Tesla’s stock value decrease along with other vehicle stocks.Volatility IndexDue to the extreme levels of volatility associated with Tesla’s stock performance, there is an index created specifically to measure it. The index is called the Tesla Daily Volatility Index (TDVI) and looks to track all of the spikes in the stock. It follows the direction of the stock movement and shows that volatile times are often associated with Tesla’s stock.ConclusionTesla’s stock has seen extreme volatility in recent months, with both the company’s own performance internally and external market influences affecting the share price. There is even a specific index created to track and follow the stock’s movement, a testament to its volatile nature. For those invested in Tesla or looking to gain exposure to the company, it is important to monitor the stock’s movement and take into consideration the risks involved.