Of the 18 mutual funds tracked by Morningstar that have held Tesla shares since 2019, 10 reduced their positions in the last quarter, with four slashing their stakes by 15% or more, Morningstar data showed. Only five added shares.
That doesn’t mean Wall Street has written off the stock. Nineteen analysts tracked by LSEG now have either a “buy” or “strong buy” rating on Tesla, up from 17 in February.
Others see it differently. Ross Gerber, whose Los Angeles-based firm, Gerber Kawasaki Wealth & Investment Management, bought 500,000 shares more than a decade ago, has been selling steadily this year.
“'I think the story is over, is the best way to say it,” said Gerber, who has whittled his position down to around 300,000 shares.
Gerber’s complaints range from Tesla’s public relations department, which he believes receives insufficient funding, to what Gerber calls Musk’s distractions by political and cultural issues.
Among the most fervent bulls is Ark Invest founder Cathie Wood, who has held Tesla in her ARK Innovation Fund since 2014 and increased her stake in the company by 10% over the first quarter, according to Morningstar data.
Perhaps it isn’t disenchantment but a decision that some of that Tesla money would be deployed elsewhere more profitably.
