Data from AI news analytics pioneer Blu Analytics highlights how EV
competition is a bigger influence on Tesla than Twitter acquisition
Analysis covered five million news articles on Tesla, Twitter, and Elon Musk
Data from AI news analytics pioneer Blu Analytics shows that negative Twitter news is not
the main driver of the Tesla share price despite claims the high profile acquisition is hitting
the stock market performance of the electric car maker.
Blu Analytics, which has developed artificial intelligence technology able to analyse, process
and understand news in real-time to deliver actionable insights in trading and financial
markets, looked at five million news articles on Tesla, Twitter and Elon Musk between
January 1 st and November 8 th this year.
Tesla shares are down 49.6% year to date with concerns about the Twitter deal and the
possible distraction of Elon Musk plus debt issues highlighted as a major concern. But Blu
Analytics data shows Tesla’s share price is driven more by the performance of Chinese EV
rivals NIO, Xpeng and Li Auto.
Blu Analytics using data from RavenPack to measure the relevance of media coverage,
narrowed the five million news articles down to around 65,000 ranking them for overall
Just 37% of articles mentioning Twitter, Tesla and Elon Musk were positive compared with
63% which were negative, but the negativity only had a marginal effect on Tesla shares with
volatility having more impact on its performance against the NASDAQ.
When sentiment on Twitter and Tesla turned clearly negative in July and August, Tesla
performance improved, analysis shows.
Blu Analytics CEO Balazs Klemm said: “The story line that Tesla behaves like a
Chinese electric vehicle stock explains the performance better and is more grounded in facts
than sensational headlines that Musk is distracted.
“We can see a clear turning point on September 29 when the first major analyst
downgrades came in followed by an actual earnings miss on October 4 th followed by Tesla
cutting its prices on cars in China. Tesla behaves like a Chinese automobile stock.”
Between September 29th and November 9th shares in Tesla fell by 38% while LI Auto
dropped 35%,NIO 47%and Xpeng fell 50%. Since September 28th Tesla has underperformed
the NASDAQ by 32% pointing to the influence of Chinese competition rather than Twitter.
Blu Analytics data shows that Tesla outperformed the NASDAQ by 16% from the start of the
year to April 4 th when Elon Musk first revealed his stake in Twitter. It then underperformed
NASDAQ by 14% until Elon Musk announced the takeover was on hold before
outperforming NASDAQ by 3% until the takeover was confirmed on October 4th .
However, analysis shows from the start of the year to October 4th Tesla performance tracked
the NASDAQ with both down around 29% indicating Tesla performance is driven more by
volatility and market conditions.
Blu Analytics is hosting an AI INNOVATION IN ASSET MANAGEMENT ROUNDTABLE
which will take place, online, on November 30th .
Speakers at the event, which is supported by Wilmott Magazine, include Dr Igor Halperin, AI
research associate at Fidelity Investments, Professor Dr Petter Kolm of NYU Courant
Institute of Mathematical Sciences, Dr Daniel Bloch, Head of Quantitative Strategies at Blu
Analytics, and Dr Miquel Noquer I Alonso, Founder of the Artificial Intelligence Finance
The roundtable will be moderated by Professor Dr Rama Cont, Professor of Mathematics at
the University of Oxford. Participants can register free at Blu Analytics | AI Asset
Management Roundtable for the event which starts at 4pm CEST.