Peter Thiel’s hedge fund Thiel Macro sold about 76% of its Tesla stake during the third quarter. The move cut the fund’s holdings by 207,613 shares. According to Investor’s Business Daily, Thiel now holds 65,000 Tesla shares valued at $28.91 million. The position still represents his largest investment at 38.83% of the portfolio.
Thiel also sold his entire position in Nvidia and Vistra during Q3. Vistra had been riding the AI data center energy wave since 2024. The sales came as Thiel reduced exposure to companies tied to AI growth.
Musk Pushes AI Chips and Issues Warning
Elon Musk continues to push Tesla as an AI and robotics company. He posted on X that he finished the AI5 chip design review on Saturday. The chips will not be available in enough volume to switch Tesla production lines until mid-2027. Tesla plans to use AI5 and AI6 chips to power self-driving systems called Hardware 5 and Hardware 6. Current vehicles run on HW4.
The next big test for Tesla stock may come if Musk removes safety monitors from Model Y robotaxis in Austin by the end of 2025. He approved his $1 trillion pay package on Nov. 6 and said robotaxis could operate without monitors in a month or two.
Gates Short Position Draws Attention
Musk also warned Bill Gates about his short position on Tesla stock. He posted on X Sunday that Gates should close out his short position soon. Musk said Gates has held the position for about eight years.
Stock Performance and Analyst Views
Tesla stock fell nearly 6% to 404.35 last week. It rose around 2.7% to 415.85 on Monday. The stock plunged 6.6% to 401.99 on Thursday and broke below its 50-day moving average. Shares are down more than 11% in November. Investors who bought at 355-375 in early September have seen more than half their gains disappear.
Cathie Wood and Ark Invest cut Tesla holdings in four straight sessions from Nov. 7 to Nov. 12. Stifel raised its price target to 508 from 483 on Monday and kept a buy rating. The firm expects some headwinds from the expiring U.S. EV tax credit but sees progress on full self-driving and robotaxi service. Tesla’s roughly $1.4 trillion valuation reflects optimism about self-driving and Optimus robots.
