By James Fattal
Investing.com -- With Tesla (NASDAQ:TSLA) share values already down more than a third since their peak in January, 42% of U.S. investors believe that Tesla’s market cap will continue dropping this year, according to a new Investing.com survey.
The survey showed that 25% of respondents believe Tesla share values will rise before the end of 2021 to a price close to the January highs, and 17% anticipate a finish to the year that exceeds the stock’s previous peak.
Investors’ prognosis is more optimistic in the long run, with 30% saying the stock price will land between $1,000 and $2,000 two years from now, 17% projecting an $800-1,000 value and 11% expecting a value of $2,000-$3,000.
“The insane run-up in the price of the stock over the last decade is, like all investments, a bet on the future,” said Jesse Cohen, senior analyst at Investing.com.
“As such, it helps to be comfortable with roller coasters if you want to buy Tesla stock. That’s because volatile price swings have become a hallmark of the stock’s performance over the years.”
The survey reveals the influence of Tesla CEO Elon Musk, with over 60% of investors believing him to be the most influential personality around when it comes to financial markets. A minority of respondents, yet still a striking 33%, agreed that Musk has built up Tesla stock’s price based on “fantasy” as opposed to “revolutionary vision.”
Perhaps more telling, however, was that almost 60% of Tesla investors are more loyal to the CEO than to the company itself.
“As one of the leading innovators in the auto industry, Tesla has generated a lot of interest from retail traders in recent years,” Cohen said. “It has developed a loyal cult-like following from fans and enthusiasts who believe in the company’s technology and often laud Musk with praise, devotion and admiration.”
“However, at the same time, the company has many vociferous critics who argue the electric vehicle pioneer could go bankrupt in the years ahead due to its soaring debt and high cash burn.”
Delving into Musk’s recent influence within the cryptocurrency space, the poll asked respondents if the Tesla chief’s manipulation of cryptocurrency values has changed their view of that investment. 51% agreed that Musk “has too much power” and 40% said that cryptocurrencies in general “are too volatile.” 24% don’t believe Musk has too much influence over cryptocurrencies, while only 12% said his influence makes them “more confident about digital currencies.”
52% of investors expressed support for policies that would reduce the power of big influencers such as Musk when it comes to manipulating financial markets.
The June poll was conducted online and gathered responses from 1,103 U.S. investors.