Tesla Stock Plummets Again... Second Largest Shareholder Sells Stake

Consecutive Two-Day Decline After New Share Issuance Announcement
UK-Based Fund Reduces Stake to Below 5%
"Exceeded Fund Inclusion Rules Due to High Price"..."Will Buy Again If Opportunity Arises"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Tesla's stock price has shown a decline for two consecutive days following a 5-for-1 stock split and the announcement of a $5 billion new share issuance.

As of 10:50 a.m. local time on the 2nd, Tesla's stock price on the New York Stock Exchange is trading at $449.58, down 5.36% from the previous day. During the session, it fell as much as 7%, trading at $440.67. Tesla's stock price surged 12% on the first day of the stock split on the 31st of last month.

The decline in Tesla's stock price is interpreted to be influenced by the largest external shareholder, the UK-based asset management firm Baillie Gifford, reporting to the Securities and Exchange Commission (SEC) that it has reduced its Tesla holdings.

Baillie Gifford reduced its holdings from 6.32% to below 5% in accordance with the fund's inclusion limit principle as Tesla's stock price surged.

In a statement, Baillie Gifford said, "We will remain a major shareholder of Tesla. We are optimistic about Tesla's future." They also emphasized that if Tesla's stock price experiences a significant correction, they may increase their holdings again.

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