Please take a look at the attached picture. It shows Tesla stock price over the last few years with S&P 500 index drawn in blue on top of the chart. As you can see the price of TSLA stock was several times more volatile than the price of S&P 500 index. However, many services (such as Yahoo! Finance) (Links to an external site.)Links to an external site.report that TSLA's beta is much less than 1.0. In other words, both services report that TSLA is LESS volatile than the market while you clearly see in the picture that it is 2 to 5 times more volatile than the market.

Question: Suppose that the services are correct (and your eyes are also correct), how do you explain this discrepancy between the volatility visible on the chart and the relatively low beta given by the data providers such as Yahoo! Finance?

TSLA 318.87GSPC 2801.31 X 100.00% 7500 46.88% 34.64% 25.00% 0.00% Jul May Sep