Renaissance Technologies increased its stake in Tesla by over 1,000-fold in the fourth quarter, and the now automaker now represents one of the firm’s largest holdings.
The hedge fund increased its stake in Tesla from just 1,400 shares to 3.4 million shares by the end of 2022, according to a filing with the Securities and Exchange Commission (SEC) on Monday (via Markets Insider).
At the end of September, Renaissance Technologies’ stake in Tesla was worth under $400,000, with its shares valued at as much as $419 million by December 31, shows the filing.
In Q4, Tesla’s stock dropped off by about 55 percent amidst shareholder concerns about rising interest rates and an oncoming recession — which experts expected to drastically decrease consumer demand.
Since the start of January, however, Tesla’s stock has rallied 80 percent, as many hope for the Federal Reserve to cut interest rates this year to help the U.S. avoid recession.
Renaissance Technologies was founded by Jim Simons and the company is now one of history’s most successful hedge funds ever.
In March of last year, RenTech owned a $1.2 billion stake in Tesla, making the company its second-largest holding, before cutting its position in the company through the end of September. Ending December, Tesla represented one of the firm’s 20 largest holdings.
In the past month, Tesla’s stock has rallied 54% and as of writing is trading at $203 per share, up 4.5% for the day.
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— TeslaNorth.com (@RealTeslaNorth) February 10, 2023
