Browsing: Tesla

Cathie Wood’s Main ETF Slips Again After $4.9 Billion Asset Drop

(Bloomberg) — Ark Investment Management’s miserable week showed few signs of easing on Friday, as its flagship exchange-traded fund looked set for a fifth day of declines.The ARK Innovation ETF (ticker ARKK) was down more than 3% in pre-market trading as of 6:28 a.m. in New York. The fund has lost 15% this week through Thursday, amid a tech selloff triggered by rising bond yields, which is putting pressure on pricier stocks.The last time Ark founder Cathie Wood suffered a run this bad was almost a year ago, during the worst of the Covid-fueled mayhem. Her main fund is now 11 times larger than it was a year ago.Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. That figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in six months.Bets on the ETF to decline continue to grow. Short interest now accounts for more than 4% of available shares, according to data from IHS Markit Ltd.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Read More

Fisker’s Goals Go Well Beyond Simply Chipping Away Tesla’s Market Share: CEO

Fisker Inc. (NYSE: FSR) founder and CEO told CNBC in an interview on Thursday his electric vehicle startup sees “real market opportunity” in customers who buy a new car every year, rather than just focusing on gaining market share from EV market leader Tesla Inc. (NASDAQ: TSLA). What Happened: Henrik Fisker made the comments after Jim Cramer, the host of CNBC’s “Mad Money”, asked him how the design of Fisker’s first electric SUV called the Ocean compares to the products offered by Tesla. The Ocean SUV is expected to be launched in the fourth quarter of next year. “At the end of the day, we’re not out here just to go and take Tesla customers away from Tesla. That’s great if they come … but the real market opportunity is the 80 million people who buy a new car every year. That’s gigantic opportunity,” Fisker told Cramer. Why It Matters: The EV segment is billed as the future of the automotive industry. In addition to startups, some of the large, established automakers are making fully electric, and hybrid-electric vehicles, aiming to keep Tesla at bay and to take a pie out of Tesla’s growing business. California-based Fisker announced Wednesday a production deal with Apple Inc.’s (AAPL) Taiwan-based supplier Hon Hai Precision Industry Co., (OTC: HNHPF) popularly known as Foxconn. The two companies will collaborate on a project named “PROJECT PEAR” to develop a breakthrough new segment EV, with production expected to start in the fourth quarter of 2023. This will mark Fisker’s second EV brand after Ocean. In October last year, the company announced it entered into a deal with Magna International Inc. (NYSE: MGA) to manufacture the Ocean. Price Movement: Fisker shares closed 4.4% lower at $21.58 on Thursday. Read Next: Tesla Shut Down Fremont Factory Temporarily Over Parts Shortages, Musk Confirms Photo courtesy: Fisker Inc. See more from BenzingaClick here for options trades from BenzingaApple And Kia Electric Vehicle Talks Haven’t Fallen Apart, Report SaysBeyond Meat Scores Lucrative Supply Deals With McDonald’s, KFC, Pizza Hut, Taco Bell© 2021 Benzinga does not provide investment advice. All rights reserved. Read More

Tesla: Buy the Dip or Pump the Brakes?

If Tesla (TSLA) investors had forgotten what down days feel like, they have been given a curt reminder over the past month. The stock has endured some brutal sessions, which have erased its gains for the year. In general, there has been volatility across the board, and most notable in the running hot tech sector. But Wedbush analyst Daniel Ives pinpoints two specific reasons why the wheels recently came off for the leading EV maker. The first is related to Bitcoin; Tesla just recently purchased $1.5 billion’s worth of the volatile asset. The fact Tesla made $1 billion in a month from its investment, and thereby putting all its 2020 EV profits in the shade, has not been lost on many. However, the recent Bitcoin sell-off, Ives believes, has driven some investors away in the near-term. And although the analyst believes Tesla “aggressively embracing” Bitcoin amounts to a strategic long-term move similar to the ones made by Square, Mastercard and MicroStrategy, there is a danger it will divert from the main purpose. “Tesla is an EV play entering the golden age of EVs and there is a lingering worry that the Bitcoin sideshow could overshadow the overall EV growth story playing out for Tesla in 2021 and beyond in the eyes of the Street,” said the 5-star analyst. The second reason behind the recent weakness is due to Tesla’s announcement it will stop selling the Model Y, the company’s lowest priced offering, alongside “continued price cuts.” These developments have raised “demand concerns” on the Street. Couple this with auto giants such as GM, Ford and others getting in on the EV action, and investors could be mulling over the increasing competition in the space. Moreover, conversations around Tesla are opinionated and strong, which the latest developments have done nothing to quell. Ives expects the roller-coaster ride to continue. “Weaving Bitcoin into the mix, Tesla shares now have added volatility and noise driving the emotional bull/bear debate around the name,” Ives concluded. “It’s ‘buckle up the seat belt time’ again for Tesla’s stock with more volatility on the horizon.” To this end, there’s no change to Ives’ Tesla rating which remains a Neutral (i.e. Hold). However, Ives might as well have said Buy, considering the $950 price target suggests upside of 39% from current levels. (To watch Ives’ track record, click here) Overall, the battle seems to be torn between the bulls and bears as TipRanks analytics demonstrate TSLA as a Hold. Based on 28 analysts tracked in the last 3 months, 7 say Buy, 14 suggest Hold, and 7 recommend Sell. Yet, the bears are in the driving seat, as the average price target hits $603.83 and implies possible downside of 11.5% in the year ahead. (See TSLA stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Read More

Musk Says Nickel Is ‘Biggest Concern’ For Electric-Car Batteries

(Bloomberg) — Elon Musk has had it with nickel.It’s scarce and expensive, so the chief executive officer of electric-carmaker Tesla tweeted on Thursday that the company’s shifting some cars to a type of battery that uses iron instead.Musk has previously pleaded with miners to produce more nickel. Supplies will be tight for the next three years, and there could be a significant deficit as early as 2023 as demand picks up, according to BloombergNEF analyst Allan Ray Restauro.Nickel is a key component in lithium-ion batteries, used in electric vehicles. It packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.The metal has rallied 16% this year on the London Metal Exchange amid a broad-based rally in commodities, with investors betting on strong demand growth as economies reopen.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P. Read More