Tesla climbs 4% as Cathie Wood and others buy the dip after a multi-day skid

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Elon Musk’s Tesla soared in 2020

  • Tesla rose as much as 4% on Wednesday as investors bought the stock’s recent dip.
  • Ark Invest CEO Cathie Wood said her firm “bought a lot” of Tesla shares on Tuesday, when the electric automakers stock dropped as much as 13%.
  • Tesla closed Tuesday 11% lower over a two-day period.
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Tesla shares recovered on Wednesday as investors bought a recent dip in the stock that saw the electric automaker’s 2021 gains wiped out.

The firm’s shares climbed as much as 4%, paring an 11% loss over the prior two trading days. 

The rebound came after Ark Investment Management CEO Cathie Wood said on Tuesday that she had “bought the dip” on Tuesday, or purchased shares at a discounted price after a decline. Tesla stock tumbled as much as 13% at intraday lows during the session.

“We bought a lot of Tesla today across any strategy that holds Tesla,” Wood told Bloomberg Radio.

She added: “All I know is we are keeping our eyes on the prize and the prize just got a little bit more interesting.”

Tesla soared more than 670% in 2020 as investors wagered heavily that it will be one of the foremost winners of the electric-car revolution as global institutions increasingly focus on climate change. Yet investors have gone off Elon Musk’s car company in recent days amid worries about sky-high valuations and the scaling-back of certain production lines.

Rising inflation expectations and bond yields have also made expensive tech stocks look less attractive – especially those that are yet to produce much in the way of profits.

Tesla rose 2.1%, to $713.65 per share, at 9:55 a.m. ET.

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