Reddit and Musk on Tesla Stocks

Walk me through  ➔

Exit

1. Sentiment Analysis

Recent Sentiment Data (Reddit)

Preda, G. (2019). Reddit WallStreetBets posts [Data set]. Kaggle.

Date Total Posts Avg Sentiment Positive % Neutral % Negative %
16/08/2021 10 0.274 9.9% 90.1% 0.0%
15/08/2021 10 0.242 13.6% 80.8% 5.6%
14/08/2021 10 -0.092 2.2% 83.5% 14.3%
13/08/2021 10 0.125 9.0% 84.1% 6.9%
12/08/2021 10 0.195 11.8% 82.6% 5.6%
11/08/2021 10 0.169 5.5% 92.9% 1.7%
10/08/2021 10 0.192 11.3% 84.0% 4.7%
09/08/2021 10 0.153 7.8% 92.2% 0.0%
08/08/2021 10 0.135 4.7% 89.3% 6.1%
07/08/2021 10 -0.058 1.5% 89.7% 8.8%

Recent Sentiment Data (Musk Tweets)

Smith, J. (2021). Dogecoin price data & Elon Musk's tweets (2021) [Data set]. Kaggle.

Date Total Tweets Avg Sentiment Positive % Neutral % Negative %
16/08/2021 1 0.625 57.7% 42.3% 0.0%
15/08/2021 6 0.303 15.4% 83.9% 0.7%
14/08/2021 18 0.099 12.2% 83.2% 4.6%
13/08/2021 22 0.082 10.9% 83.6% 5.5%
12/08/2021 9 0.041 10.9% 84.0% 5.1%
11/08/2021 5 0.192 13.0% 84.9% 2.1%
10/08/2021 4 0.215 21.0% 79.0% 0.0%
09/08/2021 2 0.000 0.0% 100.0% 0.0%
07/08/2021 2 0.300 10.3% 89.7% 0.0%
06/08/2021 22 0.101 14.1% 83.3% 2.6%

Sentiment Components Analysis Chart  ↓

Sentiment Components Analysis Chart (Reddit)

Daily distribution of positive, neutral, and negative sentiment components from r/wallstreetbets.

Sentiment Components Analysis Chart (Musk)

Daily distribution of positive, neutral, and negative sentiment components from Musk's tweets.

Insights:
Late Jan to Early March 2021:
   → There's a high percentage of negative sentiment, and Tesla’s stock price declines during this time.
   → Suggests bearish sentiment aligned with price drop.

Mid-March to Mid-May 2021:
   → Sentiment remains mixed, with neutral dominating, and the stock stabilizes.
   → Possibly a cooling-off period on Reddit after initial hype.

June–August 2021:
   → Positive sentiment increases slightly, while negative sentiment persists but declines somewhat.
   → Tesla’s price recovers and trends upward mildly.
   → A potential positive lagging effect or reduced bearish pressure.

Extreme Sentiment Days Analysis Chart  ↓

Extreme Sentiment Days Analysis Chart (Reddit)

Analysis of days with the most extreme sentiment values in r/wallstreetbets.

1

Extreme Sentiment Days Analysis Chart (Musk)

Analysis of days with the most extreme sentiment values in Musk's Tweets.

1

Insights:
Positive Sentiment (right side of the graph)
   → Tends to be followed by positive or neutral next-day price moves
   → A few cases show >3% gains after high sentiment days
   → But not all high-sentiment days lead to price increases — some even lead to negative returns.

Negative Sentiment (left side)
   → Often followed by sharp next-day drops (up to -5% or -6%)
   → More consistent correlation here: very negative days often precede losses

Sentiment Strength vs. Price Volatility Chart  ↓

Sentiment Strength vs. Price Volatility Chart (Reddit)

Relationship between the strength of sentiment and the volatility of Tesla’s stock price.

0.00

Sentiment Strength vs. Price Volatility Chart (Musk)

Relationship between the strength of sentiment and the volatility of Tesla’s stock price.

0.00

Insights: Little to no correlation

2. Price Impact Analysis

Price Impact Data (Reddit)

Date Post Count Avg Sentiment Price Volume Daily Range
16/08/2021 10 0.274 $228.72 23103303 $11.04
15/08/2021 10 0.242 $0.00 0 $0.00
14/08/2021 10 -0.092 $0.00 0 $0.00
13/08/2021 10 0.125 $239.05 16731467 $5.19
12/08/2021 10 0.195 $240.75 17681686 $7.80
11/08/2021 10 0.169 $235.94 9800558 $3.66
10/08/2021 10 0.192 $236.66 13432305 $4.90
09/08/2021 10 0.153 $237.92 14715349 $4.63
08/08/2021 10 0.135 $0.00 0 $0.00
07/08/2021 10 -0.058 $0.00 0 $0.00

Price Impact Data (Musk Tweets)

Date Tweet Count Avg Sentiment Price Volume Daily Range
16/08/2021 1 0.625 $228.72 23103303 $11.04
15/08/2021 6 0.303 $0.00 0 $0.00
14/08/2021 18 0.099 $0.00 0 $0.00
13/08/2021 22 0.082 $239.05 16731467 $5.19
12/08/2021 9 0.041 $240.75 17681686 $7.80
11/08/2021 5 0.192 $235.94 9800558 $3.66
10/08/2021 4 0.215 $236.66 13432305 $4.90
09/08/2021 2 0.000 $237.92 14715349 $4.63
07/08/2021 2 0.300 $0.00 0 $0.00
06/08/2021 22 0.101 $233.03 15623049 $6.23

Price vs Sentiment Correlation Chart  ↓

Price vs Sentiment Correlation Chart (Reddit)

Correlation between sentiment and price movements from r/wallstreetbets.

Price vs Sentiment Correlation Chart (Musk)

Correlation between sentiment and price movements from Musk's tweets.

Insights:
1. No Consistent Lead-Lag Relationship
   → Sometimes sentiment increases before a price rise (e.g., late May), suggesting possible predictive power.
   → But in many other cases, price and sentiment diverge, or sentiment is reactive.

2. High Volatility in Sentiment
   → Sentiment spikes up and down frequently, even when price is flat. Reddit sentiment especially shows noisy behavior.

3. General Trend Decoupling
   → From April to August, sentiment remains high while price moves sideways — showing sentiment doesn’t always track price.

Sentiment Momentum Analysis Chart  ↓

Sentiment Momentum Analysis Chart (Reddit)

Analysis of sentiment momentum and its impact on price (Reddit).

Sentiment Momentum Analysis Chart (Musk)

Analysis of sentiment momentum and its impact on price (Musk).

Insights:
Positive Correlation Trend (Weak but Present):
   → More green dots appear at higher sentiment levels, especially in Reddit data.
   → Red dots (losses) cluster around neutral or negative sentiment.

Momentum Is Not Always Predictive:
   → Many losses still occur when sentiment is slightly positive.
   → Suggests sentiment alone might not provide strong directional signals.

Outliers:
   → Some extreme positive returns tied to major events or spikes in sentiment, particularly from Musk tweets.

Sentiment Lag Analysis Chart  ↓

Sentiment Lag Analysis Chart (Reddit)

Analysis of delayed price reactions to sentiment changes from Reddit.

Sentiment Lag Analysis Chart (Musk)

Analysis of delayed price reactions to sentiment changes from Musk.

Insights:
Volatility in Sentiment
   → Sentiment changes rapidly day to day; Musk tweets in particular show abrupt shifts.

Local Correlation Windows:
   → In certain weeks, a sentiment drop precedes a price dip (e.g., early March).
   → Requires deeper lag correlation analysis to validate any consistent lag effect.

3. Trading Activity Analysis

Trading Activity Data (Reddit)

Date Total Comments Post Count Trading Volume Price Volatility Avg Sentiment
16/08/2021 300 10 23103303 $11.04 0.274
15/08/2021 12626 10 0 $0.00 0.242
14/08/2021 4069 10 0 $0.00 -0.092
13/08/2021 39724 10 16731467 $5.19 0.125
12/08/2021 32144 10 17681686 $7.80 0.195
11/08/2021 28550 10 9800558 $3.66 0.169
10/08/2021 30965 10 13432305 $4.90 0.192
09/08/2021 26518 10 14715349 $4.63 0.153
08/08/2021 12182 10 0 $0.00 0.135
07/08/2021 3874 10 0 $0.00 -0.058

Trading Activity Data (Musk Tweets)

Date Tweet Count Trading Volume Price Volatility Avg Sentiment
16/08/2021 1 23103303 $11.04 0.625
15/08/2021 6 0 $0.00 0.303
14/08/2021 18 0 $0.00 0.099
13/08/2021 22 16731467 $5.19 0.082
12/08/2021 9 17681686 $7.80 0.041
11/08/2021 5 9800558 $3.66 0.192
10/08/2021 4 13432305 $4.90 0.215
09/08/2021 2 14715349 $4.63 0.000
07/08/2021 2 0 $0.00 0.300
06/08/2021 22 15623049 $6.23 0.101

Trading Volume vs Social Activity Chart  ↓

Trading Volume vs Reddit Comments Chart (Reddit)

Relationship between trading volume and Reddit comment activity.

Trading Volume vs Musk Tweet Activity Chart (Musk)

Relationship between trading volume and Musk Twitter activity.

(The Musk chart displays trading volume and Musk tweet activity only for the 40 days with the most extreme average sentiment (20 highest and 20 lowest). The x-axis does not represent a continuous timeline, but rather highlights days with unusually high or low sentiment in Musk's tweets.)

Insights:
Spike Alignment
   → Reddit comment spikes often coincide with trading volume surges (e.g., late Jan, early March).
   → Musk tweet bursts also sometimes precede or align with volume changes, though less consistently.

Asymmetry in Influence
   → Not all volume spikes follow social activity. But major Reddit spikes almost always come with volume.

No Obvious Lag
   → Social and market activity tend to peak at the same time.

Volume vs Extreme Daily Sentiment Chart  ↓

Volume vs Extreme Daily Sentiment Chart (Reddit)

Analysis of trading volume in relation to extreme daily sentiment in Reddit sentiment.

Volume vs Extreme Daily Sentiment Chart (Musk)

Analysis of trading volume in relation to extreme daily sentiment in Musk’s tweets.

Insights:
Co-Movement of Peaks
   → Sentiment spikes (especially positive ones) often align with volume increases.

Divergence in Late Timeline
   → In summer months, sentiment remains volatile but volume fades — more visible in Reddit data.

Emotion Doesn’t Always Equal Action
   → Especially for Musk tweets, high emotional content doesn't always move volume.

Price Volatility vs Sentiment Chart  ↓

Price Volatility vs Sentiment Chart (Reddit)

Analysis of price volatility in relation to sentiment changes in r/wallstreetbets.

Price Volatility vs Sentiment Chart (Musk)

Analysis of price volatility in relation to sentiment changes in Musk’s tweets.

Insights: No strong correlation detected between sentiment strength and volatility for either Reddit or Musk data.

A. Reddit - Sentiment Components Analysis

What it shows: Daily distribution of positive, neutral, and negative sentiment in Reddit posts, with Tesla’s closing price overlaid.

User Interactions:

- Date Range Sliders: Zoom in on key events.

- Legend Click: Toggle sentiment or price visibility.

- Tooltip: Shows daily sentiment % and Tesla price.

A. Musk Tweets - Sentiment Components Analysis

What it shows: Daily distribution of sentiment in Musk’s tweets, with Tesla’s closing price overlaid.

User Interactions:

- Date Range Sliders: Zoom in on key events.

- Legend Click: Toggle sentiment or price visibility.

- Tooltip: Shows daily sentiment % and Tesla price.

Next

B. Reddit - Extreme Sentiment Days Analysis

What it shows: Relationship between extreme Reddit sentiment and next day price change (scatter plot).

User Interactions:

- Min Post Count Slider: Filter by post volume.

- Tooltip: Date, sentiment, price change, post count.

- Legend Click: Toggle sentiment layers.

B. Musk Tweets - Extreme Sentiment Days Analysis

What it shows: Relationship between extreme tweet sentiment and next day price change.

User Interactions:

- Min Tweet Count Slider: Filter by tweet volume.

- Tooltip: Date, sentiment, price change, tweet count.

- Legend Click: Toggle sentiment layers.

Previous

Next

C. Reddit - Sentiment Strength vs Price Volatility

What it shows: Sentiment strength vs Tesla’s daily price range.

User Interactions:

- Min Sentiment Strength Slider: Filter weak sentiment days.

- Tooltip: Date, sentiment strength, price range.

C. Musk Tweets - Sentiment Strength vs Price Volatility

What it shows: Sentiment strength vs Tesla’s daily price range.

User Interactions:

- Min Sentiment Strength Slider: Filter weak sentiment days.

- Tooltip: Date, sentiment strength, price range.

Previous

Next

D. Reddit - Price vs Sentiment Correlation

What it shows: Line chart of Tesla price vs Reddit sentiment over time.

User Interactions:

- Date Range Sliders: Select time range.

- Legend Click: Toggle price/sentiment line.

- Tooltip: Daily values shown.

D. Musk Tweets - Price vs Sentiment Correlation

What it shows: Tesla price vs Musk sentiment over time.

User Interactions:

- Date Range Sliders: Select time range.

- Legend Click: Toggle price/sentiment line.

- Tooltip: Daily values shown.

Previous

Next

Let’s take a closer look at the impact positive sentiments make on Tesla’s prices. We see at this point both the sentiment and price are high. What happened at this point? Looking at the comments...

Previous

Next

E. Reddit - Sentiment Lag Analysis

What it shows: Line chart comparing Reddit sentiment and price over time, exploring lag effects.

User Interactions:

- Date Range Sliders: Zoom into key periods.

- Legend Click: Toggle lines.

- Tooltip: Shows sentiment and price per date.

E. Musk Tweets - Sentiment Lag Analysis

What it shows: Line chart comparing tweet sentiment and price over time with lags.

User Interactions:

- Date Range Sliders: Zoom into key periods.

- Legend Click: Toggle lines.

- Tooltip: Shows sentiment and price per date.

Previous

Next

F. Reddit - Trading Volume vs Reddit Comments (Extreme Days)

What it shows: Bar/line chart comparing volume and comment activity for top 40 extreme days.

User Interactions:

- Tooltip: Volume and comment count per day.

- Legend Click: Toggle volume/comment series.

F. Musk Tweets - Trading Volume vs Tweet Activity (Extreme Days)

What it shows: Bar/line chart comparing trading volume and tweet count on sentiment peak days.

User Interactions:

- Tooltip: Volume and tweet count per day.

- Legend Click: Toggle volume/tweet series.

Previous

Next

Reddit - Volume vs Extreme Daily Sentiment

What it shows: Bar/line chart of volume vs highest absolute sentiment per day.

User Interactions:

- Tooltip: Daily volume and extreme sentiment.

- Legend Click: Toggle visibility.

Musk Tweets - Volume vs Extreme Daily Sentiment

What it shows: Bar/line chart of volume vs tweet sentiment extremes.

User Interactions:

- Tooltip: Daily volume and sentiment score.

- Legend Click: Toggle visibility.

Previous

Next

Reddit - Volume vs Extreme Daily Sentiment

What it shows: Bar/line chart of volume vs highest absolute sentiment per day.

User Interactions:

- Tooltip: Daily volume and extreme sentiment.

- Legend Click: Toggle visibility.

Musk Tweets - Volume vs Extreme Daily Sentiment

What it shows: Bar/line chart of volume vs tweet sentiment extremes.

User Interactions:

- Tooltip: Daily volume and sentiment score.

- Legend Click: Toggle visibility.

Previous