The winning streak that carried Tesla (NASDASQ:TSLA) through this week may be fading. The electronic vehicle (EV) innovator enjoyed a relatively smooth ride from February up until now. Today, though, TSLA stock has slipped back into the red amid a wave of negative reports. Much of this morning’s coverage has focused on either the discriminatory lawsuit levied against the company or flaws in its self-driving technology. What hasn’t been so heavily reported is another story that broke yesterday that points toward a smoother road ahead.
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What’s Happening With TSLA Stock
After spending the bulk of this trading week in the green, TSLA stock is back to falling. The company’s performance this morning has been turbulent to say the least. As of this writing, it is down 0.44% for the day, though it seems to be climbing again. TSLA stock remains in the green for the week with gains of 3.4%.
This performance can’t be chalked up to negative market momentum, as was often the case last month. Other EV producers such as Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN) are in the green today, with the latter trading quite well. It seems that the bad news of the day is forcing TSLA stock down. While that’s not surprising, it also indicates that shares will rise again as the trends shift. Especially since Tesla received some good news too.
Why It Matters
Yesterday, CleanTechnica reported that Confused.com has found some interesting data regarding Tesla. According to a recent study from the insurance comparison platform, Tesla is the world’s most searched car brand. As it turns out, it is the most searched brand by quite a bit, beating out all competitors.
According to the platform’s findings, Tesla’s annual Google searches on a global scale are 11,100,000. That figure puts it above all competitors by a significant margin. Following it are Volkswagen (OTCMKTS:VWAGY) and Toyota (NYSE:TM), who are tied with 9,140,000 annual searches. Fellow EV producer Ford (NYSE:F) ranks sixth on the list with 6,120,000, while General Motors (NYSE:GM) doesn’t even make the list of the top 20 automakers by search volume.
It’s no surprise that interest in Tesla would be high. The high volume that it saw last year is likely due in part to CEO Elon Musk’s popularity and public profile. What’s clear from this is that Tesla is still considered the go-to name for most EV purchases. And while not every prospective buyer who searches for Tesla may purchase a vehicle, it is still the first name that they think of when it comes to EV technology. Additionally, these searches have often translated into sales. Tesla had the highest sales figures of any EV producer in 2021, and it is primed to do it again in 2022.
What It Means
In the recent 2021 Q4 earnings call, Musk made clear that Tesla is prioritizing scaling production to meet mounting demand. Studies like Confused.com’s help strengthen the case for why this decision will serve both the company and its investors well. Interest in Tesla is continuing to rise, even as competitors further their efforts to match Tesla’s vehicles. Searches mean interest, and interest means demand. So far, Tesla has been able to meet all such demand, as evidenced by its record-setting delivery statistics for the final quarter of 2021.
While the supply chain has posed constraints, there’s still no reason to believe that it will hold Tesla back more than its smaller competitors. The company’s size has proven an advantage when it comes to securing materials. TSLA stock will likely be back in the green soon as the company’s progress overshadows temporary bad news.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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