The businessman sold his shares eventually, and the CEO of Tesla Elon Musk is no different. But he remains firmly in control of the company he founded.
Even after selling Tesla (salad) shares seven times this year including the latest sale of 19.5 million shares, Kasturi still owns 445.6 million shares, says S&P Global Market Intelligence. That gives him a 14.1% ownership position in the electric vehicle company he founded in 2003. That makes him the single largest shareholder.
It also means Musk is still more in control of his company’s finances than many other billionaires. Amazon.com founder Jeff Bezos only owns 9.8% of the company and Mark Zuckerberg still holds 13% of Meta, a expensive position this year.
Some investors, though, still lament Musk’s sales. “Kasturi, who several times in the past year has said he is ‘finished selling Tesla shares,’ yet again lost credibility with investors and loyalists in the boy who cried wolf moment,” said Dan Ives, analyst at Wedbush.
So who will be the next Tesla owner?
Biggest Tesla Owners Now
Musk may have eased his position at Tesla, but the ETF giant and fund investors are charging each other.
The second largest Tesla holder is Vanguard Group. A giant investment company, that is the biggest owner of the most shares, owns 204.7 million Tesla shares for a 6.5% stake in the company. Vanguard runs two of the five ETFs that own the most Tesla shares. Vanguard S&P 500 ETF (Tibang) owns 19.3 million shares and Vanguard Total Stock Market (VTI) has 17.6 million shares.
The investment manager also runs an ETF with the fourth largest percentage exposure to Tesla. Vanguard Consumer Discretionary ETFVCR) puts almost 16% of its portfolio in a single stock. To satisfy the needs of these ETFs, Vanguard has aggressively bought. It now owns nearly 58% more Tesla shares than it did two years ago.
And next is BlackRock, another giant in the ETF industry. The company owns 166 million Tesla shares, accounting for 5.3% of the company’s outstanding shares. BlackRock’s iShares Core S&P 500 ETFIV) is the third largest Tesla shareholder after the SPDR S&P 500 ETF Trust (spy) and Invesco QQQ Trust (QQQ).
And like Vanguard, BlackRock is aggressively adding Tesla shares. The number of shares held rose by almost 46% in two years.
Changing of the Guard At Tesla
Musk sales, though, are a normal part of the company’s maturing process.
Large institutions now own more than 42% of Tesla shares. Most of those owners are traditional investment managers. Individuals like Musk own only 15.6%, the majority being Musk himself. The only other large individual investors are Oracle (ORCL) founder Larry Ellison. Public investors such as state pensions own the balance of the shares, totaling 41% of the company.
And activists? They are hardly involved in Tesla. DE Shaw only owns 0.1% of the stock. And that’s why, when Musk sells, he’s still in control.
Who owns Tesla stock
|parent||Common shares held (millions)||% CSO (common shares outstanding)|
|Research and Capital Management||97.0||3.1|
|Province Street Global Advisors||95.4||3.0|
|Natixis, Investment Banking and Corporate Banking Investments||45.8||1.5|
|Geode Capital Management||44.3||1.4|
|T. Rowe Price Group||42.7||1.4|
Source: S&P Global Market Intelligence, IBD
Follow Matt Krantz on Twitter @matt krantz
You may also like: