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Tesla ‘s shimmer is rusting among everyday investors in the latest market drawdown, according to JPMorgan. Analyst Peng Cheng found the electric vehicle maker suffered the highest outflows of all individual stocks from retail investors in the past week. That’s part of a bigger trend among individual investors of gradually selling mega-cap technology names, the analyst added. In the past week, retail investors pulled a net $411 million from Tesla. That accounts for almost one-third of the $1.25 billion net sold from single stocks in the week. “TSLA again led the outflow,” Cheng said in a note to clients Wednesday. Fellow mega-cap tech stocks Amazon and Meta Platforms were also among the most sold by individual investors last week. Following these moves, Cheng said retail investors have likely seen an average return of 8.9% year to date, underperforming the 12% advance in the broad S & P 500 index. TSLA .SPX,.IXIC YTD mountain Tesla’s 2023 vs, the S & P 500 and Nasdaq Composite After soaring in the first two quarters of this year, Tesla is on pace to end the third quarter down almost 7%. While Tesla shares have almost doubled in 2023, they’re still lower than where they ended in 2021. Similarly, the S & P 500 and tech-heavy Nasdaq Composite are poised to post their first negative quarters of the year Friday, although both are still up for the year, underscoring the strength of the first-half rally. Tesla has been a favorite among everyday investors in recent years. Vanda Research found the stock was slated to be the most-bought security on net among retail investors this year, as of data from earlier this month. That means it would eclipse even the SPDR S & P 500 ETF Trust (SPY) , which tracks the S & P 500. Following Tesla’s big gains so far in 2023, Wall Street sees little upside ahead. The average analyst has a hold rating and sees upside of less than 1%, according to LSEG, formerly known as Refinitiv. — CNBC’s Michael Bloom contributed to this report.
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