Wealthy & Tesla Stock
Table of Contents :
Introduction.
Elon as Tesla King.
Larry’s Tesla bet.
Big Tesla Shareholders.
My Perspective.
Disclaimer.
Have you missed out on the biggest investment opportunity recently, where two of the world’s wealthiest men are invested heavily.
I believe this stock could be a goldmine for a long term investor, and no prize for guessing it right, it is Tesla.
Introduction
What is common amongst Elon Musk and Larry Ellison of Oracle, both are extremely wealthy.
But there is another commonality amongst these two billionaires, which is they both own huge stakes in electric vehicle pioneer, Tesla.
According to Bloomberg Billionaire's Index, both of them are ranked amongst top four richest people on the planet.
Elon is the largest while Larry is the 7th largest shareholder in Tesla.
I believe Tesla is a disruptive innovator, that has pioneered and spearheaded widespread adoption of EV technology, which has become invogue these days.
Their early mover advantage enabled them to have complete domination in emerging EV space, which is reflected in it’s appreciating stock price.
Elon as Tesla King
On the day of recording, Elon owns about 411 million shares in Tesla which is about 13% of company’s outstanding shares.
Often called as Technoking of Tesla, as his name is synonymous both with the company and EVs in general, that gives him an extra ordinary influence on it’s stock price.
Generally, founders dilute their ownership overtime, but he still owns more than any other investor in the company.
He sold his valuable Tesla stock in a big way only twice, first while raising money for a huge tax bill, and second when he bought Twitter.
When Tesla stock surged lately, he gained $55 billion thus becoming the richest man once again.
Larry’s Tesla bet
Larry Ellison owns about 45 million shares of Tesla, which is about 7 times larger position than another Tesla bull, Cathy Wood of ARK Invest.
This concentrated position help him add about $7 billion to his wealth this year alone.
But he also owns about 42% stake in Oracle the company he founded, whose stock went up 50% this year, that enabled him to gain $45 billion in wealth.
I believe diversification do help you cushion during economically challenging times, but wealthy men do run concentrated portfolios, which gives them an edge during market uptrends.
That is exactly what happened in his case, he bet big on Tesla few years ago, after many ups and downs he made billions on this bet.
Big Tesla Shareholders
Tesla being a S&P 500 index stock, so many big index fund companies own mammoth holdings of the stock.
Vanguard owns nearly 7% of Tesla, thus making it the second largest shareholder after Elon Musk.
At third spot is financial giant Blackrock with it’s 5.6% holding in the company.
Next comes State Street Global Advisors, Capital Research and Management, Geode capital Management, and then comes Larry Ellison.
Cathy Wood of ARK Invest, who has taken a bullish stance on Tesla long before any one else, holds much lesser number of Tesla shares as it is a much smaller fund, than likes of Vanguard or Blackrock.
But ARK do run a more concentrated portfolio than it’s bigger peers.
My Perspective
Big American Automakers like Ford or GM, alongside new bee Rivian are adopting Tesla’s charging standards.
Starting next year, all of them will be able to access Tesla’s huge charging network.
In my limited wisdom, this could be a tipping point proving Tesla’s domination in EV space.
But when the stock is up about 50% in last month or so, I believe it has run too fast too soon. Also when Fed is doing monetary tightening, the macroeconomic environment looks uncertain and challenging, which will have a negative impact on asset prices at least in the short term.
That does not mean Tesla is a bad investment, rather I like the stock as a long term buy and hold, but looks little overbought to me at the moment.
Disclaimer :
As a disclaimer, I’m not a financial advisor please consult one before investing based on your personal financial situation.