Retail Investors Pile Into Tesla (TSLA) After 14% Plunge on Trump-Musk Rift

Retail traders aggressively bought Tesla (TSLA, Financials) shares Thursday after the stock plunged 14.3%its 11th worst day since going publicamid a very public feud between CEO Elon Musk and U.S. President Donald Trump. The stock rebounded 5.6% Friday to around $299.14.

Vanda Research data showed self-directed investors net purchased $201.3 million of Tesla shares after trading $2.6 billion in volume, making it the second-most bought stock by that group. Traders also poured $41.5 million into the Direxion Daily 2x Bull ETF, a leveraged fund that tracks Tesla.

Despite the sharp selloff, the options market showed little panic. Tesla's 30-day implied volatility rose to 77, up from earlier levels but well below the 106.1 peak in April. Chris Murphy of Susquehanna said some traders capitalized on the volatility by selling puts, a sign of confidence that the slide might stabilize.

Buy the dip is the overwhelming sentiment, said Marco Iachini of Vanda, citing social media scans on Reddit and X, where Tesla remains a retail investor favorite.

Tesla shares had surged 90% following Trump's election win in November, but are now down about 37% from their Dec. 17 peak.