Summary List Placement
- Shares of Tesla slumped as much as 7% in early trading Thursday.
- The fall comes just a day after Baillie Gifford, Tesla's largest outside shareholder, said it had to trim its stake amid the stock's record-breaking rally.
- Tesla fell 6% on Wednesday following the announcement.
- Watch Tesla trade live on Markets Insider.
- Read more on Business Insider.
Tesla shares continued to slump Thursday, a day after its largest outside shareholder announced it had cut its stake due to the recent blistering rally.
Shares of Tesla fell as much as 7% in early trading Thursday, extending a 6% loss from Wednesday. Baillie Gifford, the automaker's largest shareholder, on Wednesday announced that it had trimmed its stake in the company due to internal rules limiting the weight of a single stock in client portfolios.
Baillie Gifford said that it's still a Tesla fan, and would welcome the opportunity to increase its stake once again if the stock were to fall further. Tesla shares have been on an epic rally this year, surging more than 430% through Wednesday's close.
The slump comes just after Tesla's 5-for-1 stock split went into effect on Monday. On Tuesday, to take advantage of the stock's epic rally, Tesla announced plans to raise as much as $5 billion in a share sale.
Tesla is officially in correction territory, marked as a drop of more than 10%, after falling this week. The stock has shed more than 10% between Monday and Wednesday's close.
Markets Insider
NOW WATCH: What it's like inside North Korea's controversial restaurant chain
See Also:
- David Baron's fund has returned 93% to investors in the last 12 months thanks to a Tesla bet 5 years ago. He told us why he thinks the electric-car behemoth has much further to run, despite its huge rally.
- GOLDMAN SACHS: Female portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men.
- GOLDMAN SACHS: Buy these 9 stocks that are poised to continue crushing the market as the ‘shared favorites’ of Wall Street’s biggest investors