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Millennial investors are ditching Tesla during its wild week (TSLA)

elon musk

  • Holdings of Tesla fell 8% on Robinhood over the past week.
  • The stock has skyrocketed in the same time following Elon Musk's plan to go private, giving remaining investors a nice boost.
  • Follow Tesla's stock price in real-time here.

Elon Musk sent shockwaves through the stock market this week when he announced plans to go private.

The stock surged more than 10% following his cryptic tweet that funding had been secured to take the electric carmaker private, and investors on Robinhood may have cashed out following the rise.

Data from the free stock trading app show roughly 7,400 investors ditched the stock in the past seven days, the biggest rout of any equity on the brokerage.

On August 2, 83,405 Robinhood investors — who skew much younger than traditional brokerages — held the stock. As of August 9, a total of 75,994 held it, marking a decline of about 8.8%. That's close to the lowest number since Business Insider first started tracking the data in June. 

Since peaking at $379, Tesla has given up nearly half of its gains since Tuesday, and was down 3.8% in trading Thursday as doubt swirled about the financing Musk had touted earlier.

Legal experts told Business Insider that if financing had not actually been secured at the time of his tweet — which the Securities and Exchange Commission (SEC) says counts a material statement — the billionaire likely broke federal laws. The SEC's requirements say a company must file an official disclosure within four days of a major event. Those events are generally defined as an acquisition, leadership change, or something in regards to the company’s financial situation.

The Wall Street Journal reported on Wednesday that the SEC was, in fact, investigating the tweet. 

Shares of Tesla have risen 11% since the beginning of the year.

Now read:

  • Traders keep finding new ways to bet against Tesla
  • One dirty word keeps popping up as Wall Street weighs the next market crash — and it should strike fear into the hearts of investors everywhere
  • A $300 billion asset manager says investors are overlooking a huge threat that's building right in front of their eyes

Tesla stock price private elon musk

SEE ALSO: 'A private life is a happy life': Here's what Wall Street is saying about Tesla's plan to leave the stock market (TSLA)

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