Author Osaemezu Ogwu is a cryptocurrency journalist with several years of experience in the crypto-verse.
Tesla (TSLA) stock is moving higher and regularly conquers new peaks despite all the negative expectations. One of the reasons is the fact that top investors believe in it.
Amidst rumors of experiencing a fatal collapse in its stock, a technology giant Tesla Inc. (NASDAQ: TSLA) proved critics wrong once again that it is still gaining momentum. Its shares doubled what was initially projected by market analysts. But this record-breaking achievement would have been a pipe dream, if not for the loyalty of some investors. And one of the biggest of them is billionaire James Simons.
Tesla (NASDAQ: TSLA) stock is experiencing a very good time right now, all thanks to the surge in its shares supported by investors. Now the price is over $900 which could have seemed unbelievable even a month ago. Sources revealed that one of the biggest shareholders is Renaissance Technologies, a hedge fund. The fund is reported to have added more than 3 million shares of Tesla (NASDAQ: TSLA) to its holding in the fourth quarter of last year.
Furthermore, the fund was established by technology enthusiasts and billionaire James Simons, who is considered as a premier quantitative driven investor-owned nothing less than 3.9 million shares of Tesla (TSLA) at the end of December 31, 2019.
The company’s stake in Renaissance’s portfolio has moved up to 1.3% from 0.1% in just one quarter.
Tesla (TSLA) Stock Is Afloat against All Odds
News emanating from Tesla would be a very bitter pill to swallow for investors and analysts who had bet that the company cannot maintain the standard and as such the price would collapse soon. But instead, the prices keep increasing, and surged 142% in the past three months and has more than doubled since the beginning of 2020.
To understand how impressive these figures are, let’s compare them with the following ones. Dow Jones Industrial Average, DJIA, has gained 4.2% over a 3-month period, and 2.4% so far this year. The S&P 500 index, SPX, has climbed 7.9% in the past three months and 4.2% in the year to date.
Tesla is home to some of the biggest investors at Silicon Valley and it doesn’t get bigger than Simons. The tech guru retired from Renaissance’s daily operations over 10 years ago but still has a firm grip on operations in and around the company.
Although most analysts refused to give Elon Musk a chance last year, as they predicted a catastrophic fall for Tesla (NASDAQ: TSLA) stock, one major reason for its surge is the depth of the firm’s investors and their faith in the company.
Apart from Musk himself, who is a regular member of the Forbes list of the wealthy, major shareholder James Simons is ranked No 21 on the list, with a net worth of $21.6 billion.