Tesla Shares Rally in Premarket Trading on ‘Buy the Dip’ Bounce

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Tesla Shares Rally in Premarket Trading on ‘Buy the Dip’ Bounce
Credit: © Reuters.

(Bloomberg) -- Shares in Tesla (NASDAQ: TSLA ) gained in U.S. premarket trading, 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 2.5% at 6:45 a.m. in New York after rebounding from a drop of as much as 13% during regular hours on Tuesday to close just 2.2% lower. The stock had briefly traded below the level it was when the electric-carmaker entered the S&P 500 Index in December. The Nasdaq 100 saw a similar rebound in Tuesday’s session as “buy the dip” began trending on Twitter, closing just 0.2% lower after a 3.5% slump in the morning.

Other electric-vehicle makers also climbed in premarket trading Wednesday: Nikola Corp (NASDAQ: NKLA ) gained 3.3%, while Lordstown Motors Corp (NASDAQ: RIDE ) advanced 2.6%.

READ: Dip Buyers Nearly Wipe Out Tech’s Biggest Loss Since Covid Panic

Cathie Wood’s 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 down 1% in 2021, after a 675% rally in 2020.

Story Link: Tesla Shares Rally in Premarket Trading on ‘Buy the Dip’ Bounce

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