A long time
The shareholder is withdrawing money from the table.
Bailey Gifford, an asset manager based in the UK, has been involved in Tesla stock for years, accumulating a stake of over 69 million shares at one point. Gifford had a high point in the fourth quarter of 2019 and its stake represented approximately 7% of Tesla (ticker: TSLA) stock.
Gifford recently sold an additional 19 million shares, reducing its stake to less than 40 million shares. In the past few months, Gifford has sold more than 40% of his recent stake in the electric-vehicle manufacturer.
The move may shake the confidence of some Tesla bulls. Nevertheless, Gifford owes more than 4% of the stock, making it the largest holding of Tesla’s shares outside of Elon Musk and passively managed index funds. And it said that this is essentially a step towards imbalance.
“The substantial increase in Tesla’s stock price means that we need to reduce our holding to reflect concentration guidelines that restrict the weight of a single stock in a portfolio of customers. However, we intend to remain a significant shareholder for many years ahead. ”
The imbalance caused by rapidly rising share prices is a so-called “upper-class problem” on Wall Street. This is true for Gifford, who has made billions on Tesla stock. Some of the fund’s first purchases were $ 7 per share.
Tesla shares closed down 5.8% at $ 447.37 on Wednesday. Nevertheless, the stock is up nearly 435% year to date. And Tesla’s success has affected the entire EV sector.
EV Stock Baron’s The tracks that have been trading since 2020 are on average more than 350% since then. EV companies are also raising billions of fresh capital. Of china
(XPEV), for example, recently completed initial public offerings. And another Chinese competitor,
(NIO), sold more stock in the secondary offering.
The shares of NIO are almost 400% year to date. Li and Xpeng’s shares are up more than 50% since their respective IPOs. Gifford, by the way, holds more than 9% of NIO stock outstanding.
EV crushes comparable numbers for returns
Dow Jones Industrial Average,
As well as for traditional auto companies. Shares of
(F), for example, are below 15% and 25% years, respectively.
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