The as soon as nice Tesla bull Chamath Palihapitiya says he bought his place
Chamath Palihapitiya announced that he has sold his Tesla position to invest capital in other investment ideas.
The founder and CEO of Social Capital said he ended his bet on the Elon Musk-led electric vehicle company “in the last year or so” as the high prices allowed him to raise money to fund his other ideas.
“I don’t have an infinite pool of capital. So if I have these ideas, the money has to come from somewhere, ”Palihapitiya told CNBC’s Delivering Alpha conference on Wednesday.
Palihapitiya told CNBC in January, when Tesla was trading around $ 800, that the company was a “distributed energy company” and that its stock could double or even triple again. Tesla closed at $ 781.31 on Wednesday.
Tesla was one of the biggest winners on the stock market last year due to strong demand for electric cars and investors’ preference for growth-oriented companies. The stock rose a whopping 743% in 2020. This year, the stock has outperformed the broader market with a year-to-date gain of 10.7%.
Palihapitiya said he was still optimistic about Tesla, but his thesis about the company had changed somewhat. He admitted that he “completely underestimated” how big the EV market could be.
“If you see it now, the market has turned … Tesla is going to be very busy just being a top-notch EV company,” he said.