Why Tesla Runs Counter to the Market (Patreon)

Tesla stock has a low correlation to the S&P 500. This means that the two stocks do not tend to move in the same direction. In fact, Tesla stock has often moved in the opposite direction of the S&P 500. For example, in 2020, when the S&P 500 fell by 34%, Tesla stock rose by 13%.

There are a number of reasons why Tesla stock has a low correlation to the S&P 500.

• One reason is that Tesla is a growth stock. Growth stocks are typically more volatile than value stocks, and they are more likely to experience both large gains and large losses. The S&P 500, on the other hand, is a more diversified index, and it is less volatile than Tesla stock.
• Another reason why Tesla stock has a low correlation to the S&P 500 is that Tesla is a disruptive company. Disruptive companies are companies that introduce new products or services that change the way an industry operates. Tesla is a disruptive company because it is the first major automaker to focus on electric vehicles. The electric vehicle market is still in its early stages, and it is growing rapidly. This growth is likely to benefit Tesla, but it is also likely to make Tesla's stock more volatile.
• Finally, Tesla stock has a low correlation to the S&P 500 because of its CEO, Elon Musk. Elon Musk is a controversial figure who is known for his outspokenness and his willingness to take risks. Musk's tweets and public statements can have a significant impact on Tesla's stock price.

The 163 Level is still hanging in there despite a few dips...