Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla
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 effecti...
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| Format: | Article |
| Language: | English |
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EDP Sciences
2025-01-01
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| Series: | SHS Web of Conferences |
| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_01033.pdf |
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| _version_ | 1850087079140130816 |
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| author | Ye Guangcheng |
| author_facet | Ye Guangcheng |
| author_sort | Ye Guangcheng |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-8a0b8a55ee2f4e268ad1b912b1af0fb8 |
| institution | DOAJ |
| issn | 2261-2424 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj-art-8a0b8a55ee2f4e268ad1b912b1af0fb82025-08-20T02:43:17ZengEDP SciencesSHS Web of Conferences2261-24242025-01-012180103310.1051/shsconf/202521801033shsconf_icdde2025_01033Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of TeslaYe Guangcheng0College of Arts & Science, New York UniversityThis 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.https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_01033.pdf |
| spellingShingle | Ye Guangcheng Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla SHS Web of Conferences |
| title | Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla |
| title_full | Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla |
| title_fullStr | Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla |
| title_full_unstemmed | Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla |
| title_short | Investment Strategy Research in the New Energy Vehicle Industry Based on Google Trends: A Case Study of Tesla |
| title_sort | investment strategy research in the new energy vehicle industry based on google trends a case study of tesla |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_01033.pdf |
| work_keys_str_mv | AT yeguangcheng investmentstrategyresearchinthenewenergyvehicleindustrybasedongoogletrendsacasestudyoftesla |