Tesla Inc become the highest trading stock among Malaysians on social trading platform eToro for the month of April, jumping from fourth to first. It is apparently not an altogether surprising revelation as Tesla also ranked first in January and February of this year.
We got in touch with Nemo Qin, Senior Market Analyst at eToro to understand why is Tesla so popular among Malaysians.
"Last year, Tesla delivered a total of approximately 367,500 vehicles, Tesla expects that sales in 2020 will exceed 500,000 vehicles, an increase of 36% over last year. The increase in Tesla's sales makes investors look forward to its long term growth.
Tesla is also one of the top-performing stocks this year as the strong growth projection allows investors to maintain and continue to make additional investments. At the same time, I also think the increasing stock price was driven by FOMO (fear of missing out). Although the company's electric vehicle (EV) business is ahead of other auto manufacturers, the competition of the EV vehicle market has not yet been formed and finalized" Nemo went on to explain.
Tesla Inc closed yesterday at 811.29 USD, how high it will go is anybody's guess. How much investors are willing to pay for Tesla shares is also impossible to project. Elon Musk did however tweet that 'Tesla stock price is too high imo'.
When asked what were the other actively traded stocks in April, Nemo states that AMD, Facebook, Walt Disney and Amazon rank from two to five in that order. He went on to add that many Malaysian retail investors are keen on tech stocks as they believe that technology companies seem less vulnerable to the pandemic and economic situation.
Perhaps it's time I too started thinking about building my nest egg and putting some money behind the genius that is Elon Musk. Besides if Tesla Inc keeps shooting for the stars, I just might be able to get that early retirement.