After splitting 5:1 earlier this week, shares of Tesla (TSLA) ran from $435.40 to a high of $502.08. From there, the stock took a dive to less than $420.
That’s happening for two reasons.
One, it just disclosed that one of its biggest shareholders sold a good deal of stock. In fact, according to a U.S. SEC filing, Scotland-based Baillie Gifford & Co. cut its stake to 39.53 million shares from 39.63 million shares.
However, according to The Wall Street Journal, the firm sold to “meet internal guidelines that limit the percentage of the portfolio that can be invested in a single stock,” as quoted by MarketWatch.
“We intend to remain significant shareholders for many years ahead. We remain very optimistic about the future of the company. Tesla no longer faces any difficulty in raising capital at scale from outside sources but should there be serious setbacks in the share price we would welcome the opportunity to once again increase our shareholding,” they added.
Two, the news comes after Tesla announced it would sell $5 million worth of stock.
But don’t count the stock out just yet.
There’s still plenty of bullish momentum remaining for Tesla and the EV boom.
According to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales. By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%. Plus, experts now predict that by 2030, electric cars will make up 58% of the light vehicle market.