According to Teslarati, Tesla has successfully taken over Apple as the go-to stock for millennials to invest in.
This information comes from Apex Clearing — a custody and clearing company out of Dallas, Texas. In a report the firm released for Q3 2020, Apex Clearing announced that Tesla has definitively taken over as the #1 most desirable stock for millennials to invest in. The title was previously held by Apple for four straight quarters.
“It is incredible that since the beginning of the year, in the face of persistent pandemic-related volatility, the number of millennial investor accounts across our client platforms has doubled,” said Bill Capuzzi, CEO of Apex Clearing.
Millennials are a generation that has evolved right alongside the technology of today, so naturally, they are big believers in the tech industry and that’s where they want their money to go. Apex Clearing’s report confirms that millennials love having tech-heavy investment portfolios, and goes on to reveal that while Tesla is their top investment choice, they also have a soft spot for other EV manufacturers like China’s NIO.
2020 has been a great year for Tesla — the EV giant hit multiple stock price milestones, reached an all-time high of $2,295 per share, and more than doubled its market cap to over $400 billion in under two months. Following the big boom in its stock price, Tesla enacted a 5-to-1 stock split, making the company’s common stock more accessible to investors (like millennials) who operate on a smaller scale.
A relatively more appealing stock price combined with commission-free apps (Robinhood in the USA and Wealthsimple Trade in Canada) that let users invest and trade instantly made millennial investors flock to Tesla stock like moths to a flame. Tesla is quickly expanding its range of investors on every possible front — be it geographical or generational.