Robinhood users have been scooping up Tesla's plunging stock (TSLA)

Arjun Reddy

May 23, 2019 7:51 PM

Robinhood users have been adding Tesla to their holdins despite an extremely difficult time for the electric-car maker, according to data from the Robinhood trading app.

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The number of accounts holding Tesla shares on the app increased even as analysts and shareholders have been questioning demand prospects for the company's electric vehicles.
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The Robinhood trading app, an app popular among younger investors, reported an increase in the numnber of users holding Tesla shares despite the stock's plunging price. Accounts holding Tesla increased by 4% over the past week to 156,00 from 150,000. This comes as shares have tanked almost 20% in May alone.

Tesla is the 10th most-popular stock on the platform, behind the cannabis companies Aurora Cannabis and Cronos as well as tech companies like Apple and Microsoft.

Tesla's plunging stock price comes as analysts and shareholders have increasingly questioned the demand prospects for the company's electric vehicles. Last month reported a significant first-quarter loss and also lowered guidance for the year .

Several analysts have put forward dire bear cases , forecasting scenarios where the share price could drop to the low double digits .

Additonally, T. Rowe Price, which used to be the automaker's largest institutional investor, sold more than 90% of its stake , potentially signaling a loss of faith in the company's prospects.

And CEO Elon Musk has been criticized as doing little to stem the negative news , and for also contributing to questions about the company's future .

Tesla is down 42% year to date.

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