Other major hedge funds in the renaissance increase Tesla’s stake in Reuters in third quarter

By David Randall

NEW YORK (Reuters) – Renaissance Technologies, Aristides Capital and Adage Capital Partners were among the largest U.S. hedge funds to increase or take a new stake in Tesla (NASDAQ 🙂 Inc. in the last quarter, ahead of a bitter October rally that praised the company’s market value . More than $ 1 trillion and subsequent fall this month.

Renaissance added just over 610,000 shares to the company, nearly quadrupling its stake, while Adage added a new 42,800-share position and Aristides added a new 8,500-share position, according to SEC reports.

Overall, 211 hedge funds and asset management companies added new positions to Teslan in the last quarter, while 116 companies were left out of their positions in the company, according to the company, WhaleWisdom.

Tesla shares rose 43.5% in October, driven by forecasts of an order from the Hertz car rental company. Some of those gains were cut in November, and the company’s value fell below $ 1 trillion on Monday as investors reacted to CEO Elon Musk’s recent $ 6.9 billion in sales.

Notices from each fund came in the SEC’s quarterly end documents released on Monday and do not specify whether the companies have maintained those positions. Shares of Tesla closed at $ 1,013.39 on Monday evening, nearly 31% higher than the $ 775 level on Sept. 30.

Shares fell 18.5% from a $ 1,243.49 record on Nov. 4 before Musk announced it would sell a 10 percent stake in the company after the idea was posted on a Twitter (NYSE 🙂 poll.

Institutional interest in Tesla is likely to have helped boost the company’s valuation, which remains high in the face of growing competition from early automakers like Rivian Automotive Inc and established companies like General Motors Co (NYSE 🙂 with greater focus on electric vehicles. Seth Goldstein, Morningstar analyst.

Tesla sells 130.7 times its future earnings.

Despite the recent sale of the stock, “we still believe the market is becoming one of the top five auto manufacturers in the world for Tesla to sell vehicles and launch a high-margin autonomous driving software subscription service,” he said.