Major early investors sold their last shares tesla market share has dropped significantly space x He has profited from and held two of his most successful long-term bets.
Scottish Mortgage Investment TrustThe London-listed closed-end fund managed by Baillie Gifford said Friday that SpaceX represented 11.1% of its total assets as of Wednesday, down from 15% as of Sept. 30.
The position helped drive Scottish Mortgage’s return on net asset value to 31.5% in the six months to the end of September. Scottish Mortgage also said in its half-yearly results report that it had sold its remaining Tesla stake in April, ending an investment dating back to 2013.
SpaceX windfall
Scottish Mortgage first invested in SpaceX in December 2018, when Elon Musk’s rocket company was reported to be valued at around $31 billion, and has invested around $200 million by 2021.
Scottish Mortgage Investment Trust.
Investments have soared as SpaceX’s launch operations and Starlink satellite network expand. At the time of its blockbuster IPO in June, SpaceX accounted for around a quarter of Scottish Mortgage’s portfolio by value.
The investment trust has since sold its shares as post-IPO lock-up restrictions are gradually lifted, but said its confidence in SpaceX remains high.
Scottish Mortgage said: “The decision to reduce the position post-emergence while maintaining a significant investment demonstrates the importance of balancing conviction with disciplined portfolio management.”
SpaceX made a significant contribution to Scottish Mortgage’s performance over the same period, increasing revenue by 8 percentage points.
SpaceX.
The trust’s net asset value (NAV) returned a total of 31.5% in the six months to 30 September, compared with a 16% return. FTSE Worldwide Index. The stock price returned 33.8%.
Proceeds from the sale of SpaceX also helped pay down debt on Scottish Mortgage and reduce gearing.
Tesla’s withdrawal
The Tesla sale capped another highly profitable bet for Scottish Mortgage, which invests globally in high-growth companies, a mix of public and private companies, usually from a long-term investment perspective.
In a portfolio update in July, the fund announced it had invested about $470 million in Tesla, generating realized gains of about $6.2 billion over 13 years.
Tesla.
Scottish Mortgage said on Friday: “Having returned 13 times the capital invested since we first invested in 2013, we feel the share price now reflects much of the promise in autonomy and robotics.”
The trust also points to increased competition in Tesla’s core auto business, particularly in China.
Shares of SpaceX and Tesla fell about 9% and 11%, respectively, on Thursday, leaving the companies’ market capitalizations more than $420 billion below Tuesday’s closing price. Investors are concerned that Elon Musk could face a new parliamentary investigation after the U.S. midterm elections, exposing his company to tougher regulation.
Scottish Mortgage is one of several British investment trusts (equivalent to US closed-end funds) that backed SpaceX from its early days.
Another Baillie Gifford Fund, Edinburgh Worldwide Investment Trustbecame the focus of a virulent activist campaign by Boaz Weinstein’s hedge fund Saba Capital in 2025, with the company’s SpaceX holdings becoming a key flashpoint in the long-running battle.
