Tesla’s stock price has taken a hard hit. The electric vehicle company’s shares have dropped more than 50% from their peak in December 2025. This steep decline marks a difficult period for Tesla investors who’ve watched their holdings lose significant value over recent months.
Tesla shares have plummeted over 50% from their December 2025 peak, marking a devastating period for investors.
The selling pressure intensified as major investors began reducing their stakes simultaneously. Peter Thiel, a prominent technology investor, cut his Tesla holdings dramatically. He sold most of his 272,613 shares, keeping only 65,000. Thiel also eliminated his entire Nvidia position during the same period, citing concerns about bubbles in technology markets. Curiously, he increased his Apple holdings by purchasing 79,181 and 49,000 new shares, signaling a strategic shift in his investment approach.
Other institutional investors followed suit. PAX Financial Group LLC sold 2,532 Tesla shares as part of routine portfolio adjustments. These coordinated exits sent clear signals to the broader market about investor confidence levels. Vanguard Group Inc., as the largest institutional holder with nearly 247 million shares valued at approximately $64 billion, maintains a significant ownership stake in the company.
The pattern of institutional selling has continued for multiple consecutive days. Each wave of exits adds downward pressure on Tesla’s stock price. Market analysts note that this coordinated retreat reflects growing concerns about valuations across the entire technology sector. Electric vehicle companies, once viewed as hot growth investments, now face increased scrutiny from skeptical investors. Tesla’s brand value declined 26% in 2024, losing $15 billion, which further compounds investor concerns about future performance. Long-term Tesla investors have expressed mixed sentiment about whether to hold their positions or cut losses.
The broader circumstances matters here. Technology stocks overall are experiencing a rotation away from speculative growth investments. Investors appear to be reassessing which companies deserve premium valuations. This shift particularly impacts companies like Tesla that’ve seen dramatic run-ups in their stock prices.
Shareholder discussions have become increasingly tense. Tesla investors debate whether they should hold their positions or sell. The confidence that once fueled the stock’s rise has visibly eroded. Multiple major institutional exits signal that even sophisticated investors are worried about where Tesla’s stock is headed.
Financial reporting outlets have classified these moves as significant institutional shifts. The market continues monitoring for additional signals from major investors about their intentions. With institutional exits anticipated to continue, Tesla shareholders face an uncertain path forward as the stock remains under substantial pressure.