During a quarter of broken or barely-kept promises, unprofessional outbursts on conference calls, rationality-questioning tweets, and a record loss, it is perhaps no surprise that some of Elon Musk’s biggest backers are committing mutiny.
As Reuters reports, Fidelity Investments and T. Rowe Price Group – two of the largest investors in Tesla – disclosed in their quarterly filings tonight that they each cut their stakes in the electric automaker by more than 20%.
Additionally, Bloomberg notes that Susquehanna exited almost all of their 1.266 million shares.
It was not clear why T. Rowe Price and Fidelity reduced their Tesla holdings or whether they support a move by the company to go private.
“A lot of these mutual funds, who are the large shareholders, they can’t necessarily buy and hold private company’s stock,” said CFRA analsyt Efraim Levy.
However, bear in mind that this exodus came before Tesla CEO Musk dropped a 140-character bombshell that he may take his company private; something that had left many smaller investors wondering if mutual fund giants will stick with the company if it does go private.
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