TSLA
Tesla
-- 379.280 NVDA
NVIDIA
-- 138.310 RGTI
Rigetti Computing
-- 20.0000 PLTR
Palantir
-- 75.190 AMD
Advanced Micro Devices
-- 120.630 
Institutions adjust stock prices on position adjustment days.
Do you know what happened on the last day before Tesla was included in the S&P index? Yes, there was a frenzy in the last 15 minutes, with a rapid surge in trading volume, simply because large institutions needed to adjust their position allocations. Those who hadn't bought enough shares were rushing to buy at that time. Some institutions had bought options to exercise on the day of expiry, and market makers also had to deliver the stocks for exercise. To summarize, the rush to buy stocks on the last day before reaching the planned position causes the stock price to soar.
Similarly, Friday is the rebalance day for all large institutions. If you have noticed Cathie Wood's fund continuously reducing its holdings in Tesla, many Tesla shareholders panic. Is it that Cathie Wood is not bullish on Tesla anymore? Not necessarily. Because Tesla has recently risen too fast, the market cap has risen too quickly, and the fund's holding proportion has become too high. Rebalancing by reducing holdings on the last day could lead to an event like the incident on Friday, hence they preemptively reduce their positions to avoid the risk. You may also notice some stocks surging at the last moment, and that's for the same reason - a shortage of stocks leads to last-minute buying to meet the demand. In summary, reducing holdings of too many stocks on the closing day to adjust positions to match the relative stock index weightings.
This is the real logic behind the stock price reaction on Fridays. Without this event, Tesla's stock price would have been stable around $440, and there wouldn't have been such large fluctuations.
Next Monday, it is highly likely to return to the market value around 440 yuan, and then it will depend on the market's interpretation of the NHTSA news. Personally, I believe that this clears legal obstacles for autonomous driving, especially for Tesla's robo-taxis, addressing investors' concerns about removing the steering wheel and brake pedals design. Many investors have been worried that even if FSD technology matures, regulations may not allow it on the roads, and with different laws from state to state, without federal support, it will be a distant prospect. Choosing Trump hasn't officially taken office yet, but NHTSA has already given him and Musk such a generous gift, which is what I mentioned before, making those who were bearish on Tesla regret missing a great opportunity.
Similarly, Friday is the rebalance day for all large institutions. If you have noticed Cathie Wood's fund continuously reducing its holdings in Tesla, many Tesla shareholders panic. Is it that Cathie Wood is not bullish on Tesla anymore? Not necessarily. Because Tesla has recently risen too fast, the market cap has risen too quickly, and the fund's holding proportion has become too high. Rebalancing by reducing holdings on the last day could lead to an event like the incident on Friday, hence they preemptively reduce their positions to avoid the risk. You may also notice some stocks surging at the last moment, and that's for the same reason - a shortage of stocks leads to last-minute buying to meet the demand. In summary, reducing holdings of too many stocks on the closing day to adjust positions to match the relative stock index weightings.
This is the real logic behind the stock price reaction on Fridays. Without this event, Tesla's stock price would have been stable around $440, and there wouldn't have been such large fluctuations.
Next Monday, it is highly likely to return to the market value around 440 yuan, and then it will depend on the market's interpretation of the NHTSA news. Personally, I believe that this clears legal obstacles for autonomous driving, especially for Tesla's robo-taxis, addressing investors' concerns about removing the steering wheel and brake pedals design. Many investors have been worried that even if FSD technology matures, regulations may not allow it on the roads, and with different laws from state to state, without federal support, it will be a distant prospect. Choosing Trump hasn't officially taken office yet, but NHTSA has already given him and Musk such a generous gift, which is what I mentioned before, making those who were bearish on Tesla regret missing a great opportunity.
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666666666ha : Nonsense group, many soldiers self-high.
不做一个被动者 OP 666666666ha : Big brother Takami
105309397 : I saw it in one word.
Gratitude!
多空双亏 : Thank you, very helpful!