In Washington, the letter said that Iran funding would break US law and urged agencies to investigate. Getty Images
In Washington, the letter said that Iran funding would break US law and urged agencies to investigate. Getty Images
In Washington, the letter said that Iran funding would break US law and urged agencies to investigate. Getty Images
In Washington, the letter said that Iran funding would break US law and urged agencies to investigate. Getty Images

Members of Congress say 'anti-Israel' organisations in US received funds from Iran


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Twenty-two members of Congress have signed on to a bipartisan letter expressing concern that “anti-Israel organisations” in the US had received funding from Iran.

The letter, addressed to the Treasury Department, the Department of Justice and the Office of the Director of National Intelligence, said that such funding would break US law and urged the agencies to investigate.

“Director [of National Intelligence Avril] Haines's statement earlier this month confirming that the Iranian regime … provided financial support to pro-Palestinian protests in the United States suggests that these groups may be in violation of US law,” the letter said.

In a July statement, Ms Haines had said that the Iranian government had sought to “opportunistically take advantage of continuing protests regarding the war in Gaza, using a playbook we’ve seen others use over the years”.

“We have observed actors tied to Iran’s government posing as activists online, seeking to encourage protests and even providing financial support to protesters.

“I want to be clear that I know Americans who participate in protests are, in good faith, expressing their views on the conflict in Gaza – this intelligence does not indicate otherwise.”

Americans being exploited by Iran may not realise they are interacting with or receiving support from a foreign government, she said.

Pro-Palestine demonstrations erupted across the US earlier this year, with students taking over large parts of their university campuses to protest against the Israel-Gaza war.

The protests were mostly peaceful – although hundreds of students were detained by police, sometimes violently – and their demands focused on bringing about a ceasefire and getting their universities to divest from finances or companies with Israeli relations.

Critics, however, accused protesters of being anti-Semitic and engaging in hate speech.

Although Iran and groups including Al Qaeda voiced support for the protests, demonstrators said such messages were attempts to co-opt the movement.

Iran has been accused in the past in attempting to influence politics in the US, including engaging in election interference.

“The American people should not be kept in the dark, and it is critical that neither ODNI nor Treasury withhold information that would reveal the depth of this Iranian influence operation,” the letter said.

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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Updated: August 03, 2024, 4:17 AM