Tesla’s stock has shown a robust rally in the past few quarters, driven by significant institutional buying activity. In Q4, institutional investors seems to be bullish on Tesla ($TSLA), increasing their holdings in a way that influenced the stock’s upward trajectory.
According to HedgeMind’s data, over 620 institutional holders, based on early Q4 13F filings, increased their Tesla shares by a remarkable 44% compared to Q3. This buying surge was led by 54% of these holders who were net buyers, including 105 new institutional buyers. What’s more telling is that the buyers control a significant 77% of all the shares held among these institutional holders, indicating their strong belief in Tesla’s long-term potential.
This institutional interest wasn’t just a Q4 phenomenon. HedgeMind’s analytics reveal that institutional investors were net buyers for two quarters before Q4 as well, accumulating shares well ahead of Tesla’s explosive Q4 rally. This accumulation likely set the stage for Tesla’s sharp rise, as the stock saw increasing demand and investor confidence.
The chart provided offers additional confirmation of the bullish sentiment among institutional investors. The marked period shows consistent accumulation of shares, and as a result, Tesla’s stock price pushed higher through Q4 and into 2025. The 50-day and 200-day moving averages (MA) also reveal that the stock’s momentum remained positive, supporting the bullish case.
Tesla’s growth trajectory and market dominance, coupled with such institutional support, could indicate that the stock remains a strong performer in the upcoming quarters. As we approach Tesla’s next earnings report on January 29, 2025, it will be interesting to see if this buying trend continues, especially in light of the stock’s strong run from ~$250 to the $400+ range.
Recently, Morgan Stanley has released a bullish note on Tesla as well, raising their price target to $800 as part of their “embodied AI” thesis, focusing particularly on Tesla’s potential in the Robotaxi/Mobility sector. This has likely contributed to the stock’s upward movement.
Tesla could remain a solid investment choice for those looking to ride the wave of this electric vehicle giant’s future growth.
