| Issue |
SHS Web Conf.
Volume 218, 2025
2025 2nd International Conference on Development of Digital Economy (ICDDE 2025)
|
|
|---|---|---|
| Article Number | 01033 | |
| Number of page(s) | 9 | |
| Section | Digital Finance: Innovation, Regulation, and Inclusion | |
| DOI | https://doi.org/10.1051/shsconf/202521801033 | |
| Published online | 03 July 2025 | |
Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla
College of Arts & Science, New York University, 25 West Fourth Street, New York, NY 10012, United States
* Corresponding author: Gy2133@nyu.edu
This paper investigates a sentiment-based trading strategy in the context of the new energy vehicle industry, using Tesla (TSLA) as a representative case. Using Google Trends search volume data as a tool to observe public attention, we construct a simple momentum-style signal to evaluate the effectiveness of market sentiment in guiding trading decisions. The study compares the performance of the sentiment strategy with a traditional buy-and-hold strategy across four market regimes, including two bull markets and two bear markets. Our results suggest that the sentiment- based strategy significantly outperformed in bear markets, but counterintuitively underperformed in bull markets. This indicates that Google Trends data may serve as a useful complementary indicator in volatile or downward-trending environments. The paper contributes to the literature by extending sentiment momentum research from cryptocurrencies and broad indices to a major individual stock in the clean tech sector, Tesla, which is also a highly sentiment-driven stock.
© The Authors, published by EDP Sciences, 2025
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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