Scottish Mortgage Investment Trust Exits Tesla and Trims SpaceX
Scottish Mortgage Investment Trust fully liquidated its Tesla holdings and reduced its SpaceX stake to balance its portfolio and repay borrowings.
The Scottish Mortgage Investment Trust, a London-listed closed-end fund managed by Baillie Gifford, has fully exited its investment in Tesla and significantly reduced its holdings in SpaceX. The trust sold its remaining Tesla shares in April, concluding a relationship that began in 2013 and yielded approximately $6.2 billion in realized profit.
Fund managers cited intensifying competition in China and a belief that Tesla's share price already reflected its potential in robotics and autonomy as the primary drivers for the exit. The trust noted that the investment had returned 13 times the original capital before the liquidation.
Regarding SpaceX, the trust reduced its position from 15% of total assets on September 30 to 11.1% as of November 5, following the company's June IPO. Despite this reduction, the fund maintains high conviction in the aerospace company, which contributed 8 percentage points to its 31.5% net asset value return for the six months ending September 30. The trust used the proceeds from the SpaceX sales to repay borrowings and reduce gearing.
