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Tesla laying off over 10% as sales slump: Fresh start or setback?
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Why Cathie Wood continues to buy Tesla shares at dip

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ This article reported Cathie Wood, CEO of Ark Invest latest interview with Morningstar (Valerio Baselli) on why she kept investing in Tesla even when the stock is downtrending.
Baselli: In your latest research paper, “Big Ideas 2024,” you listed your strongest convictions. Among them, you mentioned robotics, AI, bitcoin, and also electric vehicles. You anticipate that EV sales will grow from roughly 10 million units in 2023 globally to 74 million in 2030, which is a lot, frankly, and which today I think is a very contrarian view given the increasing unpopularity of electric vehicles worldwide. Why are you so positive about that?
Wood: Well, we believe that one of the issues, range and range anxiety, is going to change as range increases. But more important, we see electric vehicle prices dropping into the $20,000 to $25,000 range within the next five to 10 years. And if you look at price points historically, you adjust for inflation, you look at price points at which auto sales really take off, model by model. It is around that $25,000 to $30,000 range. And so we believe that electric vehicles will scale to roughly 70% of the market by that time, and price will be the biggest reason.
My take: Not many would understand why Cathie Wood kept buying Tesla share at dip. Those who are negatively bias against Tesla will give unpleasant comments like "irrational woman" or "worst investor". If you check her history, she bought Tesla share since 2020 when the share price was less than 100 USD one of the worst performing stocks at that time. She is still accumulating Tesla stock with conviction now.
Why Cathie Wood continues to buy Tesla shares at dip
Why Cathie Wood continues to buy Tesla shares at dip
Why Cathie Wood continues to buy Tesla shares at dip
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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