Musk Holds Less Tesla Stock Than “Big Three” Passive Funds

The U.S.’s top three passive investing funds own more of Tesla than its creator, Elon Musk, according to the Financial Times.

Vanguard, BlackRock, and State Street have a combined 13.58% stake in the electric vehicle manufacturer while Musk, who has been dumping shares to finance his $44 billion Twitter acquisition, holds 13% of stock, according to the Bloomberg Billionaires Index. Vanguard leads the “Big Three” trio with 6.85%, followed by BlackRock with 3.6%, and State Street with 3.13%, the Financial Times reported.

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In fewer than 14 months, Musk unloaded $40 billion worth of stock, helping to precipitate a drop in Tesla’s stock price in 2022. Since January, share prices have increased 69% but are still trading far below their November 2021 peak.

The passively managed funds that comprise most of the “Big Three” holdings have a portfolio of shares that approximates a stock index, such as the S&P 500. The funds’ goal is to match the market rather than beat it.