Baillie Gifford Reduces Tesla Stake to Below 5%, Remains Long-Term Supporter
September 02 2020 - 7:16AM
Dow Jones News
By Adam Clark
Tesla Inc.'s long-term top external investor, U.K. fund manager
Baillie Gifford & Co., said Wednesday that its stake in the
electric-vehicle maker dropped to below 5% at the end of August but
it intends to remain a long-term shareholder.
The Edinburgh-based investment company said the recent rise in
Tesla's share price meant it needed to reduce its holding due to
guidelines which restrict the weight of a single stock in client
portfolios.
"However, we intend to remain significant shareholders for many
years ahead. We remain very optimistic about the future of the
company," James Anderson, co-manager of Baillie Gifford's flagship
Scottish Mortgage Investment Trust PLC, said.
"Tesla no longer faces any difficulty in raising capital at
scale from outside sources but should there be serious setbacks in
the share price, we would welcome the opportunity to once again
increase our shareholding," he said.
A regulatory filing on Wednesday showed Baillie Gifford held a
4.25% stake in Tesla.
Baillie Gifford manages around $324 billion in assets and has
long been Tesla's second-largest shareholder after Chief Executive
Elon Musk, first buying into the company in 2013.
Write to Adam Clark at adam.clark@wsj.com
(END) Dow Jones Newswires
September 02, 2020 07:01 ET (11:01 GMT)
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