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Bailey Gifford is the largest holder of Tesla shares outside of the passively managed index fund outside of Elon Musk.
By Tobias Schwarz Pool / AFP Getty Images
Long time
Tesla
The shareholder is taking money from the table.
Bailey Gifford, the UK-based asset manager, has been involved in Tesla stock for years, amassing more than 69. million million shares at one stage. Gifford’s high point was in the fourth quarter of 2019 and its stake in Tesla (Ticker: TSLA) represents the remaining 7% stake.
The fund manager sold about 10 million shares in the first half of the year, making a profit while Tesla stock rose about 160% between the end of December and the end of June.
Gifford has recently sold 19 million shares, bringing its stake to less than 40 million shares. Over the past few months, Gifford has sold the latest 40% stake in the electric vehicle manufacturer.
The move will shake the confidence of some Tesla bulls. However, Gifford has more than% outstanding stock, making it the largest holding of Tesla shares outside of Elon Musk and passively managed index funds. And he said it’s essentially a move of balance.
The significant increase in Tesla’s share price meant that we needed to reduce our holdings to reflect the concentration guidelines that restrict the weight of a single share in a customer’s portfolio. However, we intend to remain a significant shareholder for many years to come. “
The so-called “upper class problem” is due to the rapid rise in share prices on Rising Street. That’s true for Gifford, who has made billions on Tesla stock. The first purchase of some funds was about 7 7.
Shares of Tesla fell 8.8% to close at 7,447.37 on Wednesday. Still, the stock is up about 435% to date. And Tesla’s success has bolstered the entire EV sector.
EV Stocks Of the Baron Tracks tracked since the beginning of 2020 averaged more than 350%. EV companies are also raising billions in fresh capital. Of China
Li Auto Toe
(LI) and
Expang
(XPEV), for example, recently finished in early public offerings. And other Chinese rivals,
NIO
(NIO), sells more stock in secondary offering fur.
NIO shares are about 400% to date. Li and Expang shares are up more than 50% from their respective IPOs. Giffford, by the way, owns more than 9% of NIO stock.
EV returns, for crushing comparable numbers
S&P 500
And
Dow Jones Industrial Average,
As well as for traditional auto companies. Shares of
General Motors
(GM) and
Ford Motor
(F), for example, is down about 15% and 25% year on year to date, respectively.
Write to Al Route at [email protected]
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