Scottish Mortgage Investment Trust, managed by Baillie Gifford, has completed the sale of its last Tesla shares, ending a 13-year investment that yielded approximately $6.2 billion in profits from an initial investment of around $470 million.
The trust also reduced its SpaceX stake from 15% to 11.1% of its total assets, despite SpaceX being a major contributor to its recent performance, adding 8 percentage points to its 31.5% net asset value return over the past six months.
The decision to sell Tesla was influenced by the belief that its share price had already reflected much of its future potential, particularly in the face of increasing competition in the automotive sector, especially in China.
Following the sales, both Tesla and SpaceX shares experienced declines, with concerns about potential regulatory scrutiny facing Elon Musk's companies after the U.S. midterms. Scottish Mortgage's strategy emphasizes disciplined portfolio management while maintaining a strong conviction in high-growth investments like SpaceX