From Yahoo Finance: 2025-06-06 15:04:00

Retail investors seized an opportunity in the feud between Trump and Musk, buying Tesla shares after a 14.3% drop. They purchased $201.3 million of Tesla stock, making it the second most-actively purchased stock by self-directed investors on Thursday. The stock rose 5.6% on Friday to $299 amid retail traders’ bargain hunting.

As the feud unfolded, retail investors showed a renewed appetite for risk-taking, pouring money into leveraged exchange-traded funds to bet bullish on Tesla shares for amplified returns. The Direxion Daily 2x Bull ETF saw $41.5 million of net buying on Thursday, reflecting investors’ confidence in Tesla’s future despite the public dispute.

Despite the volatility in Tesla’s stock price, the options market indicated little panic among traders. Tesla’s 30-day implied volatility rose to a six-week high of 77 on Thursday but dropped to 68 on Friday. Some traders took advantage of the increased volatility to sell put options, signaling expectations for the stock price to stabilize.

Following Trump’s election, Tesla shares surged 90% but have since dropped about 37% after reaching a peak on December 17. Retail investors on social media sites like Reddit and X remain overwhelmingly bullish on Tesla, with the sentiment of “buy the dip” prevailing among users. The future of Tesla amid the feud remains uncertain as retail investors navigate the volatile market.

Read more: Retail traders scooped up Tesla as Trump-Musk spat hit stock