Tesla shares fall 15% as its recent stock spike forces its largest outside investor to trim its stake
- On Wednesday, Baillie Gifford, Tesla's largest outside investor, said it was forced to trim its stake in the automaker, according to a regulatory filing.
- Shares of Tesla slumped as much as 15% on Wednesday.
- The company said that the lowered position is due to internal policies that restrict the weight of a single stock in client portfolios.
- It added that it intends "to remain significant shareholders for many years ahead," portfolio manager James Anderson told Business Insider through a company spokesperson.
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Shares of Tesla slumped as much as 15% Wednesday to $405.12 after the stock's recent rally forced its largest outside investor to trim its stake.
Baillie Gifford on Wednesday said that it cut its position in the electric vehicle company to 4.25% from more than 6.32%, according to a regulatory filing.
The company said that the lowered position is due to internal policies that restrict the weight of a single stock in client portfolios. This year, Tesla has been on an epic record-breaking rally that's sent shares up more than 425%.
The firm also said that it remains highly bullish on Tesla. "We intend to remain significant shareholders for many years ahead," portfolio manager James Anderson told Business Insider through a company spokesperson. "We remain very optimistic about the future of the company."
He added that while the Elon Musk-led automaker "no longer faces any difficulty in raising capital at scale from outside sources," Baillie Gifford would "welcome the opportunity to once again increase our shareholding" in Tesla if the stock were to fall.
The news comes amid an eventful week for Tesla. On Monday, the stock's 5-for-1 split went into effect, and on Tuesday the company announced plans to raise as much as $5 billion in a share sale.
Baillie Gifford is no longer Tesla's largest outside investor following slashing its stake. Both The Capital Group Companies and Vanguard now hold larger positions in the automaker, according to Bloomberg data.
"We are privileged to have been Tesla's largest external shareholder over a critical period for the development of the company," said Anderson in the statement.
