Cathie Wood purchase Tesla share again; should you?
Tesla (NASDAQ: TSLA) stock gained for the second consecutive day. The shares extended yesterday's 4.9% gains with another 5.8% today, suggesting momentum behind the vehicle's firm. Meanwhile, you may praise Cathie Wood in that context.
Cathie Wood purchased approximately 42,000 Tesla shares on Monday and Tuesday (this week) for her differed ARK ETFs. The buys revealed a sharp turn from her moves within the previous two months when Wood sold over 490K Tesla shares. Market players celebrated Wood's return.
What Next
Remember, Wood sold Tesla stock consistently from late March to late May from beyond $1,000 per share until it declined beneath $700. For now, the Tesla stock stays some dollars from $700, and though Wood continues to buy, her pace paused somewhat suddenly.
ARK's website indicates that Wood purchased 1,343 shares only on Wednesday, massively lower 15,858 on Monday and Tuesday's 26,081. Such a figure suggests Wood's purchase might have approached an end, or maybe on a respite.
Moreover, the SEC filing revealed that Elon Musk decided to replace the margins loans plan of $6.25 billion for his Twitter buy with $6.25 billion in equity financing. That means the company will tie-less Tesla shares as Musk loans collateral. Also, it implies the executive could sell Tesla shares worth $6.26 billion to raise the needed cash to purchase the social media platform.
For now, it seems like Elon Musk will start selling stocks again. Moreover, Wood might stop buying soon. That might not be lucrative development for Tesla investors.
Why did Cathie Wood change her stance on Tesla? Discounted prices might have attracted the investors. 30% down than when she began selling seems a lucrative catalyst. However, Tesla had some substantive news on Wednesday.
The Independent newspaper from the UK shows Tesla introduced a rechargeable car battery (nickel-based) that can last over 1 million miles before recycling – or 100 years. That means Tesla cars will not lose any substantial charging capacity amid the owner's own time. That ensures a massive competitive advantage within the electric cars market.
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