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Daily Volume of tsla

Discussion in 'TSLA Investor Discussions' started by ppl, Jul 22, 2013.

  1. ppl

    ppl Member

    Nov 29, 2012
    great falls, va
    I remember not too long ago when daily volume of tsla trading was in the 800,000 range. With the first qtr report it dramatically increased. Wide swings obviously more trading than investing. Will it settle down? When it does, excluding short squeeze events will it ultimately raise or lower price?

    to put it into perspective compare to amazon, a fairly hot stock theses days as well. Fair number of traders on both sides of the trade. Amzn has over 3 times the number of shares outstanding than tsla. Despite this (with earnings report only two days away and dramatic price increase over the qtr) amzn average daily volume traded is only one third that of tsla. I wonder at times whether its the same 10 to 12 million of tesla shares traded each day or maybe the same 3 million shares traded multiple time each day? There must be studies on this out there. Is there a measure of the "velocity" of trading or what percentage of shares are actively traded and how it affects price?
  2. surfside

    surfside Member

    May 6, 2013
    United States
    this is a great observation and question; i'd be very interested to hear folks' opinions on this. i'm sure there must be other examples of this.

    the fear of course is that this level of trading activity is inflating the share price and if/when something changes that results in lower volumes, we are going to see a drop in the price.

  3. longtrader

    longtrader Member

    Jul 18, 2013
    charleston sc
    Volume alone really has very little to do with an actual stock price. It is a bit of a stretch, but you could use it as a measure of indecision. Surfside, just remember (deliberately keeping this simple using basic trades and ignoring futures trading) for every trade there is a buyer and a seller. Therefore, a decrease in volume will not cause the stock value to drop by itself. Quite often, stocks like Tesla that have a large amount of speculation and forward expectations built in, will see a quiet period right before an earnings release. That doesn't mean a thing when it comes to the value. It just means everyone has already placed their bets so to speak.

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