Tesla (TSLA) shares down 7% as investors cash in | We Compare Brokers

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Author: Alan Little Date: September 4, 2020

Tesla (TSLA) shares down 7% as investors cash in

There was a rare blip for Tesla (TSLA) on Thursday after the electric carmaker’s shares tumbled 7.01% in trading as investors decided to cash in on stock following the company’s impressive year-to-date rise.

Edinburgh-based investment firm Baillie Gifford said on Wednesday that it had taken a profit on Tesla and reduced its stake in the company from 6.32% to less than 5% in accordance with its own portfolio guidelines.

The move is noteworthy because Baillie Gifford is the single biggest institutional investor in Tesla.

In a statement, Baillie Gifford said that Tesla’s dizzying stock rise this year meant that it needed to reduce its holding.

It added: “However, we intend to remain significant shareholders (of Tesla) for many years ahead. We remain very optimistic about the future of the company.”

Tesla shares dipped 10% late on Wednesday and flirted with a bear market on Thursday following another 7% slump that shaved the stock price to $413.24.

The retreat comes just several days after TSLA shares soared to a record high on Monday on its five-to-one stock split.

While the intraday low logged on Thursday takes an edge off the company’s recent ascent, it still remains up 406% for 2020 and 837% for the last 12 months.

Analysts are mixed on Tesla overall though, and several made a point of stating that the recent split will not add any value to the company.

TSLA currently has seven buy ratings compared to 16 at sell and 12 at hold, with an overall consensus at hold.

The average price target is $173.83.

In a closing statement, Baillie Gifford said that it would “welcome the opportunity” to buy more shares in the future if the share price falls.

Tesla Stock

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