Renaissance, other big hedge funds increase stakes in Tesla in Q3

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NEW YORK, Nov 15 (Businesshala) – Renaissance Technologies, Aristides Capital and Edge Capital Partners were among large US hedge funds that raised or took new positions in Tesla Inc last quarter, before October’s rally dented the company’s markets. Raised the price. $1 trillion and a subsequent drop this month.

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According to SEC disclosures, Renaissance added more than 610,000 shares in the company, nearly quadrupling its stake, while Adage added a new position of 42,800 shares and Aristides added a new position of 8,500 shares.

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Overall, 211 hedge fund and asset management firms added new positions at Tesla in the past quarter, while 116 firms closed their positions in the company, according to data-tracking firm WhaleWisdom.

Tesla shares rose 43.5% in October, partially fueled by the announcement of an order from car-rental company Hertz. He surpassed some of those gains in November, with the company’s value falling below $1 trillion on Monday as investors reacted to CEO Elon Musk’s recent share sale for a combined $6.9 billion.

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The disclosures by each fund came in quarter-end SEC filings released Monday and do not specify whether the firms retained those positions. Tesla shares closed Monday afternoon at $1,013.39, up nearly 31% from their September 30 level of $775.

The stock has fallen 18.5% from its November 4 record high of $1,243.49, shortly before Musk announced that he was selling his 10% stake in the company after the idea was floated in a Twitter poll.

Institutional interest in Tesla has helped drive the company’s valuation, which remains high due to increased competition from startup automakers such as Rivian Automotive Inc. and an increased focus on electric vehicles by established companies such as General Motors Co., said Seth Goldstein. . Morningstar analyst.

Tesla is trading at 130.7 times future earnings.

Even with the recent sell-off in stocks, “we still think the market is recognizing that Tesla has become the top five automaker in annual vehicles sold globally and its high-margin autonomous driving.” The software has been successful in launching the subscription service,” he said.

Reporting by David Randall; Editing by Ira Iosebashvili and Richard Pullin

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