Tesla climbs 5% as Cathie Wood and others buy the dip after a multi-day skid
- Tesla rose as much as 5% 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 stock dropped as much as 13%.
- Tesla closed Tuesday 11% lower over a two-day period.
Tesla shares recovered on Wednesday as investors bought a recent dip in the stock that wiped out the electric automaker's 2021 gains.
The firm's shares climbed as much as 5%, 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", 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 4.35%, to $729.23 per share, at 11.22 a.m. ET.
The carmaker bettered the broader Nasdaq exchange on Wednesday, which slipped 0.14%.
