Retail Traders Seize Tesla Dip Amid Political Fallout

Retail investors poured $201.3 million into Tesla shares following a 14.3% single-day drop, the 11th worst decline since the company's 2010 IPO. The sell-off was triggered by a public feud between Elon Musk and former President Donald Trump, now back in the White House, over canceled federal contracts and tax policy.

Small-time traders dominated trading volumes, accounting for $2.6 billion in transactions and making Tesla the second-most purchased stock that day. "Tesla has been a favorite holding for this group," said Marco Iachini of Vanda Research. "When they see a drop of 14% or more, they jump in."

The buying spree extended beyond shares to Leveraged ETFs tied to the stock, demonstrating retail's appetite for risk. The political clash marks a dramatic collapse of the once-friendly relationship between the world's richest man and its most powerful politician, with markets serving as the battleground.