Beware Using News to Trade Tesla

Tesla and Bitcoin: Shared Sentiment

Studies indicate that news about companies has an immediate effect on their stock price. Here, we consider 18 news events related to Tesla over a nearly three month period to determine what this might tell us about their explanatory powers relative to price movements. Resultant price action indicates that movements are often independent of the news, which explained price changes 53% of the time – about the same as a coin toss. The findings suggest investor sentiment dominates the near term price action. Investors are unlikely to profit from short-term speculative bets based on the news.

Read the full article at SeekingAlpha.