Tesla Inc. gained on Wednesday, indicating that investors are buying the dip following a four-day drop that erased the electric-car maker’s year-to-date gains.
The day-trader favorite rose as much as 3.7% to $724.86 in New York, rebounding from the 12% slide the previous four sessions. On Tuesday, the stock had slumped as much as 13%, briefly trading below the level when it entered the S&P 500 Index in December, but closed just 2.2% down.
The Nasdaq 100 saw a similar rebound on Tuesday as “buy the dip” began trending on Twitter, closing just 0.2% lower after a 3.5% slump in the morning.
BloombergOther electric-vehicle makers also climbed on Wednesday, with Nikola Corp. gaining as much as 4%, and Lordstown Motors Corp. advancing 4.8%.
Cathie Wood, head of Ark Investment Management, was among investors who bought the weakness in Tesla shares, she said in an interview on Bloomberg Radio. A subsequent email from Ark showed that three of the firm’s exchange-traded funds purchased a total 240,548 shares of the automaker on Tuesday.
Tesla shares are little changed in 2021, after a 743% rally in 2020.
