- Tesla’s disastrous first quarter did not scare away millennial investors, according to data from the Robinhood trading app.
- Shares of the electric-car maker have come under significant pressure as of late, finishing Wednesday’s session at a two-year low.
- Tesla on Thursday announced plans to raise $2 billion, sending shares up by about 5%.
- Watch Tesla trade live.
Millennials saw Tesla’s brutal first quarter as a reason to add shares of the electric-car maker, according to data from Robinhood.
The number of accounts on the free trading app Robinhood, which is popular among younger investors, holding Tesla shares climbed by more than 8% to 145,000 in the week following the company’s earnings release.
Millennials may have been attracted by the drop in Tesla’s share price, which fell by as much as 12% following the results. For the first quarter, Tesla announced a wider-than-expected loss of $2.90 per share and a 37% quarter-over-quarter drop in revenue.
Tesla is now the 10th most widely held stock on the platform, with more users holding its shares than either Amazon or Facebook. The number of accounts holding the stock has doubled to 145,000 since the end of Q1. Aurora Cannabis is the most widely held stock on Robinhood, owned by more than 427,000 users.
Not all investors are so sanguine about the automaker’s prospects, given the company’s weak delivery numbers for the first quarter. Tesla bears had cited weak demand as a key reason for the being overvalued.
Despite these challenges, Tesla may finally be turning the corner as the automaker seeks to allay investor concerns. The company announced plans to raise $2 billion of additional capital, sending the shares nearly 5% higher as the raise alleviated fears surrounding Tesla’s liquidity position.
Tesla shares are down 26% this year.
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