The Musk Effect: How Investor Sentiment Impacts Tesla's Stock

Abstract

This paper explores the relationship between investor sentiment and stock price volatility, focusing on Tesla Inc. as a case study. The study analyses how social media activity, public perception, and news coverage contribute to short-term price fluctuations. Using Tesla's stock data and public events between 2020-2023, we demonstrate how sentiment-not just fundamentals-can trigger significant price swings. The findings support behavioural finance theories and suggest further exploration using sentiment analysis tools.

Keywords

Tags of Social Finance