Tesla Inc TSLA shares are trading lower after investment management firm Baillie Gifford reduced its stake in order to reflect concentration guidelines. The stake was reduced from 6.32% to 4.25%.
"The substantial increase in Tesla’s share price means that we needed to reduce our holding in order to reflect concentration guidelines which restrict the weight of a single stock in clients' portfolios," the firm said in a statement. "However, we intend to remain significant shareholders for many years ahead."
Why It's Important: Baillie Gifford is Tesla's largest outside investor. The stock is up more than 430% this year.
"We remain very optimistic about the future of the company. Tesla no longer faces any difficulty in raising capital at scale from outside sources but should there be serious setbacks in the share price we would welcome the opportunity to once again increase our shareholding," the statement said.
On Tuesday, Tesla announced a $5-billion at-the-market offering in an SEC filing. This came one day after the electric vehicle manufacturer's five-for-one stock split took effect.
TSLA Price Action: Tesla's stock was trading down 5.5% to $448.85 per share at the time of publication.
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