Investor's Corner

Tesla investor Vanguard becomes third-largest TSLA shareholder after 57.8M share purchase

(Credit: Megan Gale/Twitter)

Tesla (NASDAQ: TSLA) has a new large-scale shareholder in Pennsylvania-based investment firm Vanguard Group Inc, after a Form 13G filing with the Securities and Exchange Commission shows the firm purchased 57,814,310 shares of the automaker’s common stock. This makes Vanguard a 6.1% shareholder of the company, trailing only Elon Musk and another institutional investor in terms of holdings.

Vanguard filed the 13G filing with the SEC on February 10th with immediate effect. A document that discloses Vanguard’s purchase certifies the investment firm’s large-scale investment, making it the second-largest institutional shareholder of Tesla stock behind Susquehanna Securities, which owns 60.7 million shares, representing 6.5% of total ownership.

Vanguard has been purchasing Tesla stock since August 13th, 2013, according to SEC filings provided by Fintel. Since then, Vanguard has filed 31 purchases of Tesla stock, including today, which is the largest purchase by the firm yet.

Following Susquehanna Securities and Vanguard Group’s large ownership positions, Capital World Investors also owns a considerable amount of Tesla stock. According to Investopedia, Capital World Investors owns 52.2 million Tesla shares, equating to 5.6% of total ownership. The firm made this investment on September 30, 2020, and Tesla remains the second-largest entity in its portfolio, accounting for 4.9% of its diversity.

Vanguard’s TSLA purchases, according to Fintel. (Credit: Fintel)

Still, CEO Elon Musk remains the majority shareholder, owning 193.3 million Tesla shares, accounting for 20.7% of the automaker’s total available shares. Musk owns more than three times as many shares as Susquehanna Securities, and holds a considerable net worth of $202 billion, according to Bloomberg’s Billionaires List.

Musk overtook Amazon CEO Jeff Bezos as the World’s Richest Person on January 7th, 2021, after Tesla’s incredible stock surge in 2020 continued into the New Year. Despite not taking home a paycheck from Tesla, Musk still remains the richest person in the world because of his holdings.

TSLA Shares

Tesla investors have been rewarded for holding long positions for several years. After the stock surged to over $2,000 a share last year, Tesla performed a 5:1 stock split that gave retail and young investors another opportunity to purchase shares. The stock didn’t stay down at the $400 level for long, as an extending streak of profitable quarters, new vehicle launches in foreign countries, and other news sent the stock skyrocketing once again. At the time of writing, Tesla shares are trading at $809.20.

Tesla also performed a groundbreaking move by purchasing $1.5 billion of Bitcoin in January 2021, a move that was detailed in the company’s most recent 10-K filing. Bitcoin could be the company’s way of simplifying the purchase options in international markets, especially as it aggressively expands to markets outside of North America.

Disclosure: Joey Klender is a TSLA Shareholder.

H/t: @TeslaNY

Tesla investor Vanguard becomes third-largest TSLA shareholder after 57.8M share purchase
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