Tesla’s (NASDAQ:TSLA) recent winning streak continued today. It seems the electric vehicle (EV) producer is determined to maintain its place at the front of the pack. In fact, Tesla seems so determined that it is shaking off bad news. Even a diss from a well-respected name on Wall Street hasn’t held TSLA stock back today.
What’s Happening With TSLA Stock
Renaissance Technologies (RenTech) recently trimmed its position in TSLA. Founded by financial sector icon Jim Simons, RenTech is one of the best-performing hedge funds in history. It is credited with revolutionizing the way Wall Street trades through quantitative methods.
This news doesn’t sound good, but it hasn’t hurt TSLA stock. In fact, shares closed higher by more than 5% today.
Why It Matters
Renaissance’s reduced stake in Tesla was confirmed by a U.S. Securities and Exchange Commission (SEC) filing earlier this week. Quantitative-driven hedge funds like Renaissance allow algorithms to dictate many of their trades, often making significant changes to their portfolios each quarter.
And importantly, RenTech and its algorithms have been bullish on TSLA before. The third quarter of 2021 saw the fund quadruple its stake in the EV leader before reducing it in Q4. Renaissance also only reduced its Tesla stake by 9%, leaving it still with 743,000 shares, according to Markets Insider. For investors, this creates room for positive analysis. RenTech clearly still has faith in the company, it’s likely just looking to explore other opportunities.
What Comes Next for Tesla
Today should be reassuring for investors who remain bullish on TSLA stock. The company stood strong as Wall Street learned that one of the sector’s most important hedge funds cut its stake. Now, the stock may really be ready for a V-shaped bump, as predicted by InvestorPlace contributor Chris Lau.
Today is also a good reminder that Tesla can withstand seemingly every bearish update. Smaller and weaker stocks would have been pushed down by this type of news.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
