Last week we pointed out that as retail investors continued to dominate the market and in absence of institutional investors remained the marginal price setters, retail traders had aggressively bought TSLA in the last week of May 30 (buying over $4.4BN) as the stock sunk by 8%. Notably, Goldman reported that May 30 marked the largest daily net buying in 2 months (while NVDA led the selling flow, and at $2.2BN it marked the longest selling streak of 17 days since 2018).
But while retail expected a quick reversal to the selloff - which explains the buying spree - it was not meant to be, and as the feud between Musk and Trump escalated to unprecedented proportions (with the former calling the latter an Epstein pedo client), and as TSLA plunged as much as 17% last Thursday, UBS noted that its US retail market-making clients had $81 mn of outflows on Thursday, which was the largest executed volume in Tesla stock, in dollar terms, since September 2023.
