Why Ford Couldn’t Keep Tesla Stock From Popping Today

You would bewitch an F-150 Lightning next year — nevertheless Cathie Wooden is purchasing for Tesla nowadays.

What came about

Ford Motor Company (NYSE:F) stock loved a modest tailwind Thursday, closing the day up 3.1% after asserting that its unique electric F-150 Lightning pickup truck will crawl on sale next year for the low, low tag of $39,974. That’s honest appropriate $74 extra than Tesla (NASDAQ:TSLA) says it would promote its Cybertruck for, and with Ford initiating sales in 2022 — nevertheless Tesla no longer asserting when its Cybertruck will advance — Ford’s F-150 Lightning may perchance perchance likely even beat Cybertruck to market. 

And but, whereas it was Ford that made the headlines, it was Tesla stock that went up extra nowadays: 4.1%.

Tesla Cybertruck.

Tesla’s Cybertruck. Picture source: Tesla.

So what

So how did Tesla grab Ford’s hiss? (I mean, its Lightning?)

I’ve acquired a few theories. The likely is that traders are viewing Ford’s electric F-150 bet as validating Tesla’s belief of promoting electric pickup autos, and as a form of backhanded endorsement that Tesla was honest appropriate all alongside about the manner forward for autos — and autos — being electric.

A 2d component likely helping out Tesla traders is that infamous tech investor Cathie Wooden snapped up one other 69,508 shares of Tesla nowadays for three of her ARK funding funds. Blended with the extra than 47,000 shares Wooden bought the day earlier than, that makes for roughly 116,500 Tesla shares she’s added to her holdings this week — the principal such purchasing for she’s engaged in since April.  

Now what

After a month of practically about continuous selling of Tesla stock on the market, riding shares of Elon Musk’s automobile firm down practically about 25%, traders will be taking Wooden’s purchasing for as a “inexperienced light” signal that it’s protected to accept support in the water again.

And no longer even a assertion from Ford may perchance perchance likely quit this rally.

This article represents the concept of the creator, who can even merely disagree with the “real” recommendation residing of a Motley Fool top charge advisory provider. We’re motley! Questioning an investing thesis — even one in all our possess — helps us all sing severely about investing and develop choices that support us develop into smarter, happier, and richer.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.”>

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