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5 Investors Betting Big on Tesla (TSLA) Stock

  • Tesla (TSLA) cuts prices for its Model 3 sedan and Model Y SUV in China.
  • CEO Elon Musk is the third-largest shareholder of the company.
  • Shares of TSLA stock are down over 45% year-to-date.
TSLA stock - 5 Investors Betting Big on Tesla (TSLA) Stock

Source: Roschetzky Photography / Shutterstock.com

Shares of Tesla (NASDAQ:TSLA) are in the red today following price cuts of two electric vehicles (EVs) sold in China. As a result, TSLA stock investors are concerned the EV company is seeing less Chinese demand and/or more competition.

The Model 3 sedan will now have a starting price of about $36,615, down from the original price of $38,540. On top of that, the Model Y SUV will now retail for about $39,780, down from the original price of $43,630. These price cuts partially reverse price hikes seen earlier during the year due to rising raw material costs.

In September, Tesla delivered 83,135 China-made vehicles, setting a record monthly high for the company. Still, Elon Musk noted last week that “China is experiencing a recession of sorts,” mostly in the property markets.

Still, Tesla fell short on its third-quarter earnings, with revenue coming in at $21.45 billion versus the consensus analyst estimate of $21.96 million. Meanwhile, earnings per share, or EPS, tallied in at $1.05, beating the analyst estimate of 99 cents. Deliveries for the quarter totaled 343,000 vehicles, falling short of the estimate for 364,660 vehicles.

Furthermore, investors are speculating that Musk may have to sell more TSLA in order to fund his Twitter (NYSE:TWTR) acquisition, leaving a major overhang for shareholders.

5 Investors Betting Big on TSLA Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, an impressive 2,529 13F filers owned TSLA, a decline of 179 filers from the previous quarter. Of those filers, 281 of them own Tesla in their top ten positions. In addition, the institutional put/call ratio sits at 0.95, unchanged from Q1. That’s equivalent to 347.86 million calls and 330.12 million puts, implying a neutral options stance. With that in mind, let’s take a look at the EV company’s largest shareholders.

  1. Vanguard: 204.72 million shares. Vanguard purchased 9.2 million shares during Q2.
  2. BlackRock (NYSE:BLK): 166.11 million shares. BlackRock purchased 381,894 shares during Q2.
  3. Elon Musk: 155.03 million shares. Musk sold 7.76 million shares last August, most likely to fund the Twitter acquisition.
  4. State Street (NYSE:STT): 95.36 million shares. State Street sold 1.92 million shares during Q2.
  5. Capital World Investors: 90.51 million shares. Capital World sold 18.4 million shares during Q2.

On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/5-investors-betting-big-on-tesla-tsla-stock/.

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