Tesla’s stock edges up, but pares earlier gains after large shareholder discloses reduced stake

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Shares of Tesla Inc. edged up 0.8% in premarket trading, paring earlier gains of as much as 3.7%, after it was disclosed that a large shareholder reduced its stake in the electric vehicle maker. The stock, which reached its premarket high minutes after trading started at 4 a.m. Eastern, is attempting a bounce after falling 4.7% on Tuesday in the wake of plans to sell up to $5 billion worth of shares. Scotland-based Baillie Gifford & Co., which was Tesla’s second-largest shareholder with 6.3% of the shares outstanding, according to FactSet, now owns 4.25% of Tesla’s stock, according to a filing with the Securities and Exchange Commission. Baillie Gifford said its reduced its Tesla stake given guidelines that restrict the percentage of the portfolio that can be in a single stock, following the run up in prices, according to a report in The Wall Street Journal. Tesla’s stock has nearly tripled (up 169.4%) over the past three months, while the S&P 500 has advanced 14.5%.
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