FT News Briefing Tesla’s EVs stall in China
Sep 9, 2024
Investors are buzzing about AI while tech stocks face a downturn. A new ETF aims to capitalize on companies overlooked by major indices. Meanwhile, Tesla is witnessing a slowdown in China, struggling against surging competition from local automakers. As consumers steer towards hybrids, Tesla may need to pivot its strategy amidst regulatory challenges. The podcast highlights the critical landscape of EVs in China and the implications for future growth.
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Tech Sector Growth Reality
- Tech sector growth is not as strong as perceived, driven mainly by AI excitement.
- Traditional tech businesses show slower growth, and investors might shift focus to other sectors like financial services.
Reject Stock ETF Strategy
- Rob Arnott's ETF targets "reject" stocks removed from indices like S&P 500, betting on their recovery.
- This strategy capitalizes on the artificial price dip after index removal, expecting performance to rebound, like Dillard's 500% return.
Dillard's Stock Rebound
- Dillard's, removed from Russell 1000 in 2017, exemplifies the potential of "reject" stocks.
- Its value increased by over 500% after removal, supporting Arnott's reversion-to-the-mean theory.