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3 Fun Facts About Tesla Stock’s Q4 Boom

Tesla shares have been on a tear in Q4. Today, Wall Street Memes presents 3 fun facts about the stock’s meme-style rally and pullback.

Tesla stock  (TSLA) - Get Tesla Inc Report has been dominating the market news once again. Due to a combination of factors that include business deals with a rental car company, strong results reported by other EV companies, and CEO Elon Musk’s unpredictable tweets, Tesla share price has bounced around quite a bit lately as they keep reaching for new all-time highs.

Figure 1: A sign bearing the company logo outside a Tesla store in Cherry Creek Mall in Denver.

Figure 1: A sign bearing the company logo outside a Tesla store in Cherry Creek Mall in Denver.

Today, Wall Street Memes presents three fun facts about this wild rollercoaster ride that Tesla investors have embarked on since the start of Q4.

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#1. Fastest climb in 2021

On November 4, TSLA shares ended the trading day valued at nearly $1,230. At that point, the stock had been up a whopping 58.6% in the fourth quarter alone. That is: nearly 60% gains in only 25 business days.

This was TSLA’s record rally in 2021 in such a short period of time. The chart below shows that the previous record for the year had been 54.7% in the first few days of January, when Tesla completed its post-US election rally to what was then a peak price of $880 per share.

Figure 1: Trailing 25-day gains in TSLA.

Figure 1: Trailing 25-day gains in TSLA.

#2 Heaviest volume in 10 months

Maybe not a coincidence, the recent rally in TSLA was accompanied by a noticeable spike in dollar volume traded. The graph below shows that, on a six-week average that today encompasses the entire Q4 period, $28 billion worth of Tesla stock have traded hands daily.

The prior records had been in (1) early September 2020, following the unwind of the share split-driven rally; and (2) early January 2021, at the end of the post-election bounce. Notice how volume can spike both for bullish or bearish reasons, as Q4 has proven to be the case.

Figure 2: Trailing 6-week average volume, in MM.

Figure 2: Trailing 6-week average volume, in MM.

#3 Worst dive this year

Not all has been great for Tesla investors, however. In fact, those who jumped in earlier in November to try and ride the upside momentum have seen their investment lose the most in 2021 in the shortest period of time.

Only three days after TSLA made all-time highs, on November 4, shares had already declined 16.8% from the historical peak. Such dives are highly unusual for stocks in general, especially outside earnings week, although less so for such a volatile name as Tesla.

The two other instances in which Tesla declined more than 15% in only three trading days, over the past five years, had been in early September 2020 (again, the unwind of the stock split rally) and February 2020 (oddly enough, a pullback that was seemingly unrelated to the global COVID-19 crisis that was about to unfold a couple of weeks later).

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)