Giant Fund Buys Up Tesla and Plug Power Stock, Sells GM
Comment of the Day

January 23 2023

Commentary by Eoin Treacy

Giant Fund Buys Up Tesla and Plug Power Stock, Sells GM

This article from Barron’s may be of interest to subscribers. Here is a section: 

DNB Asset Management materially increased investments in EV maker Tesla (ticker: TSLA) and Plug Power (PLUG), a hydrogen fuel-cell technology company, while slashing its stake in General Motors (GM) in the fourth quarter. The unit of Norway's largest financial-services firm, DNB, disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.

Eoin Treacy's view

Norway’s commitment to renewables is a very vocal and not least because it is such a large exporter of oil and gas. Nevertheless, one cannot argue with the timeliness of these purchases. Tesla lost 75% of its value in little more than a year. That’s a sufficiently large drop to encourage some value oriented interest.

The big question for a buyer at this stage is what will happen to interest rates. The valuation contraction in 2022 was driven by the Fed’s aggressive hiking. The rebound now underway is less about any major improvement in demand for Testa’s products and more about the expectation inflation has peaked and a return to a liquidity rich, low inflation world is only around the corner. Without significant movement on interest rates, this rebound is likely to mark the beginning of potentially lengthy base formation development.

The risk-on attitude gripping stock market is filtering down into some of the even more speculative parts of the energy sector. Hydrogen plays are once again beginning to attract interest.

The L&G Hydrogen Economy UCITS ETF Is testing a medium-term sequence of lower rally highs.
UK listed Proton Motor Power Systems is firming from the lower side of an emerging base formation.  
Norway’s NEL ASA broke its downtrend is now firming from the NOK15 area. 

Back to top

You need to be logged in to comment.

New members registration