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InvestmentsRenaissance, other big hedge funds increase stakes in Tesla in Q3 By...

Renaissance, other big hedge funds increase stakes in Tesla in Q3 By Reuters


© Reuters. FILE PHOTO: A Tesla mannequin 3 automobile is seen in their showroom in Singapore October 22, 2021. REUTERS/Edgar Su

By David Randall

NEW YORK (Reuters) – Renaissance Technologies, Aristides Capital and Adage Capital Partners have been amongst massive U.S. hedge funds that boosted their stake or took new positions in Tesla (NASDAQ:) Inc final quarter, earlier than a searing October rally that vaulted the corporate’s market worth above $1 trillion and a subsequent tumble this month.

Renaissance added barely greater than 610,000 shares in the corporate, practically quadrupling its stake, whereas Adage added a brand new place of 42,800 shares and Aristides added a brand new place of 8,500 shares, in accordance with SEC disclosures.

Overall, 211 hedge funds and asset administration companies added new positions in Tesla final quarter, whereas 116 companies closed out of their positions in the corporate, in accordance data-tracking agency WhaleWisdom.

Tesla shares surged 43.5% in October, fueled in half by the announcement of an order from car-rental firm Hertz. They pared a few of these positive aspects in November, with the corporate’s worth dipping beneath $1 trillion on Monday as traders reacted to CEO Elon Musk’s latest share gross sales of a mixed $6.9 billion.

The disclosures by every fund got here in quarter-end SEC filings launched Monday and don’t specify whether or not the companies have maintained these positions. Shares of Tesla closed at $1,013.39 Monday afternoon, practically 31% greater than their Sept. 30 stage of $775.

The inventory has fallen 18.5% from its Nov. 4 file excessive of $1,243.49, shortly earlier than Musk introduced that he was promoting 10% of his stake in the corporate after floating the concept in a Twitter (NYSE:) ballot.

Institutional curiosity in Tesla has doubtless helped push up the corporate’s valuation, which stays excessive in the face of accelerating competitors from startup automakers like Rivian Automotive Inc and an growing deal with electrical autos by established firms resembling General Motors Co (NYSE:), mentioned Seth Goldstein, an analyst at Morningstar.

Tesla trades at 130.7 instances future earnings.

Even with the latest selloff in shares, “we still think the market is assuming Tesla becomes a top-five automaker globally in annual vehicles sold and is successful in launching its high-margin autonomous driving software subscription service,” he mentioned.

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