has a roughly 10% weight to the EV giant.
Obviously, those aren’t favorable points given the fact that the stock is down 18%. Yet Tesla could be poised to rebound because the White House is putting EV adoption front and center in President Biden’s massive infrastructure package.
“About $174 billion of the infrastructure bill is dedicated to a wide range of green initiatives, including building out and supporting the transition to electric vehicles,” says Morningstar analyst Dave Sekera.
Tesla and Tax Credits
Within the Biden proposal is a tax credit plan aimed at motivating car buyers to go electric.
“One of the initiatives is a tax credit paid out for the purchase of new electric vehicles, including autos as well as buses and trucks,” adds Sekera. “We currently forecast that by 2030, about 20% of new-vehicle sales in the United States will be battery electric vehicles and another 30% will be hybrids. But if the infrastructure plan is enacted as proposed, we expe
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Cathie Wood Is Losing Her Mojo: The Flagship ETF of ARK Invest Is Now Down Over 10% For the Year, While the S&P 500 Index Is up Over 12% In the Same Period May 6, 2021 07:46 EDT
Cathie Wood’s ARK Invest fund is in a maelstrom these days. After recording gains of nearly 150 percent in 2020, the fund’s flagship ARK Innovation ETF (ARKK) is now down over 10 percent so far this year. For reference, the benchmark S&P 500 index is up over 12 percent during the same period.
A decided shift in investor sentiment lies at the heart of this critical underperformance. The ARK Innovation ETF, like all other ETFs under the ARK Invest fund, is extremely growth-oriented. In fact, early growth companies constitute one of the biggest pies in the fund’s holdings. However, in the current equity environment, where everything is already priced to perfection, growth is no longer outperforming. Of course, rising inflation expectations – and the attendant increase in yields – are not improv