Elon Musk buys unloads 600 million of Tesla stock
Over the past few months, the electric vehicle (EV) producer has faced some steep challenges, many of which can be traced back to CEO Elon Musk’s polarizing behavior. His political affiliations have sparked a backlash from consumers far beyond the U.S., compromising the company’s sales on a global scale.
Despite the momentum TSLA stock has seen recently, the company has failed to demonstrate any sustainable growth, typically falling again as quickly as it rises. This indicates that in an uncertain economy, it is not as well-positioned to overcome shifting market tides as some of its big-tech peers.
Declining sales aren’t the only factor compromising Tesla stock, though. Recent reports indicate prominent investors are slashing their positions in the unstable company.
When market conditions start to shift in a negative direction, hedge fund managers will do what their industry’s title suggests — hedge their bets, even on the market’s highest-growth companies. Right now, that appears to mean trimming positions in Tesla, a stock that seemed poised to soar as markets turned a corner into the new year.
One hedge fund in particular made some critical moves during the first quarter of 2025. Coatue Management, founded by billionaire investor Philippe Laffont, recently offloaded a sizeable portion of its Tesla holdings. Based on 13F filings, the investment firm trimmed its position by 600,000 shares, reducing it from 2.2 million to 1.6 million.
Tesla isn’t the only mega-cap tech stock that Coatue sold in Q1. It also offloaded 1.4 million shares of Nvidia (NVDA) , reducing its position from 10 million shares to 8.6 million. Additionally, the hedge fund lowered its position in Microsoft (MSFT) from 3.5 million to 3.3 million, selling off a total of two hundred thousand shares.
These numbers make it clear that the tech-focused hedge fund is growing increasingly less bullish on U.S. companies. This is further evidenced by the fact that it completely exited positions in software producer ServiceNow and struggling chipmaker Qualcomm.
