Saudi Press

Saudi Arabia and the world
Thursday, Mar 28, 2024

Major Tesla investor dumps a big chunk of shares

Major Tesla investor dumps a big chunk of shares

A major shareholder in Tesla has become bearish about the company.
Scottish fund manager Baillie Gifford & Co. sold 11.1 million shares of Tesla during the first quarter, the firm disclosed in a filing Thursday. That sell off reduced the fund's holdings by 40% since December 31. The shares sold constitute 1.2% of Telsa's total shares outstanding.

Baillie Gifford still owns 1.7% of Tesla's shares, and among institutional investors, still has the fifth largest stake in Tesla. But this move marks the second straight quarter in which Baillie pulled back on its Tesla holdings. The firm sold 7.4 million shares in the last three months of 2020, meaning that its has sold more than half of its stake in Tesla since the end of September.

Baillie Gifford did not respond to a request for comment about its decision to sell Tesla stocks.

The price at which the shares were sold was not disclosed, nor was the date. Tesla hit a record high close of $883 per share on January 26. Since then the company's stock has dropped just over 25%, putting it into bear market territory. Baillie has not been alone in selling shares.

Year to date Tesla (TSLA) shares are down more than 7%.

But the company's share prices were up 743% in 2020, making it by far the year's best performing major stock. Its market value now exceeds that of the six largest automakers in the world — combined.

Tesla reported record profits in the first quarter, topping the $1 billion mark in adjusted earnings for the first time. It sold 500,000 cars last year and said it will sell more than 750,000 in 2021 while continuing to increase sales by about 50% annually in at least the next few years. The company is building two new assembly plants, one near Berlin to serve Europe and one near Austin, Texas. Both plants should be completed this year but won't start to produce mass volumes of vehicles until next year.

Tesla is also facing increased competition from established automakers, such as Volkswagen (VLKAF) and General Motors (GM), which are making major pushes to increase electric car production. The shift is being driven both to meet increasingly tougher and more expensive environmental regulations and feed the growing demand for electric vehicles from car buyers. These competitive offerings have started to eat into demand for Tesla vehicles.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×