We recently compiled a list of the 10 Hottest Large-Cap Stocks Right Now. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other large-cap stocks.
This article will analyze several prominent large-cap stocks that are currently exerting significant influence on market dynamics. These stocks are currently considered “hot” because their stock prices are relatively more volatile, and they draw the attention of a large pool of investors. These stocks are the most talked about, with high trading volumes, large price actions and overall hot atmosphere surrounding them currently.
What to watch when it comes to Large-Cap Stocks?
Large-Cap Stocks are usually household names, stocks which even the non-investing population has heard of. They are considered safer investments than small-cap stocks, so they will naturally bring a larger volume when it comes to trading.
Price change over the past week is the first parameter we will analyze when talking about the hottest Large-Cap Stocks. Another parameter which we will analyze is the volume of shares traded over the course of the past trading week. Even with Large-Caps, when investors and traders see large changes in volume, they could get spooked or could see an opportunity to jump in and aboard the train.
The first days of the new year, as well as the last days of the year gone, are usually very volatile. There are a lot of speculation and tax-loss harvesting going on, which affects the broader market dynamics. On the other hand, investors who took profit in 2024 are looking for new investments to start their new investment year strong. The New Year’s Day holiday also affects the trading continuity, further deepening the volatility. To see which firms kicked this year off in the red, you can check out the following article.
The Large-Caps listed here are all market titans, with market caps over $200 billion dollars.
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Tesla, Inc. (NASDAQ:TSLA)
Return: -8.69%
Tesla shares started this week at $428.29. Tesla bulls thought that, after a pretty rough week they had before this one, a turnaround may be coming. However, Monday proved them wrong. The volume of 64.82 million shares traded wasn’t enough to keep up the positive momentum. In the end, TSLA ended the week 8.69% in red, compared to previous week.
The biggest news this week was the Tesla Cybertruck explosion, which occurred in Las Vegas on Wednesday morning. Even though the explosion wasn’t the result of a mechanical issue, it was reflected in TSLA’s price action, since its shares fell to $374 per share on Thursday, which was the lowest point since the start of December.
Many investors viewed this as a buying opportunity, likely influenced by the perceived close connection between Tesla’s CEO and the newly elected president. This sentiment, coupled with significant trading volume exceeding 95.34 million shares, drove the stock price back to $410.44 per share. Following a period of relative stagnation, Tesla experienced a surge in investor interest following the 2024 election. Tesla also brought back a perk it once offered to its users, guaranteeing them free Supercharging for life for new purchases or leases of Tesla model S. With the global electric vehicle market poised for significant growth, particularly in light of advancements such as Switzerland’s impending legalization of autonomous driving in March 2025, Tesla remains a prominent player and a compelling investment opportunity within the large-cap sector.
Overall TSLA ranks 10th on our list of the hottest large-cap stocks. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.