Tesla (TSLA) stock gained 1.1% yesterday after reports showed major institutional investors boosted their holdings in the electric vehicle (EV) company during Q3. One of Tesla’s key backers, Nomura Asset Management, increased its stake by 4.2%, buying another 47,674 shares. Following this move, Nomura now holds 1.17 million TSLA shares, valued at roughly $373.6 million, making Tesla its tenth-largest holding.
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A wave of asset managers and hedge funds recently released their 13F regulatory filings, disclosing their holdings as of September 30, 2025. These filings offer insight into the portfolio strategies of prominent investors, helping retail traders identify companies with strong growth potential.
Institutional Investors Are Pumping Millions into Tesla
Despite underperforming the broader S&P 500 (SPX) index this year, with just a 1.6% gain, Tesla continues to attract institutional interest. The EV maker has faced headwinds from falling vehicle sales, the expiration of the $7,500 federal tax credit, and CEO Elon Musk’s occasional controversies.
Notably, many investors see Tesla as more than an EV manufacturer. The company’s fast-growing energy storage segment, promising Robotaxi initiative, advancing Full Self-Driving (FSD) technology, and humanoid robot program offer diversified growth potential.
Among funds that increased their stakes, Brighton Jones LLC raised its holdings by 11.8%, Revolve Wealth Partners increased by 21.2%, Bison Wealth increased by 52.2%, and AMG National Trust Bank raised by 11.8%. Long-time Tesla Bull Cathie Wood’s ARK Invest funds increased their holdings by 16.64%, adding 512,158 shares.
However, not all investors remained bullish. Billionaire investor Peter Thiel slashed his fund’s holdings in Tesla by a massive 76%, selling 207,613 shares during Q3. Microsoft (MSFT) co-founder Bill Gates continues his long-running short bet against Tesla. Following these changes, institutional investors now own about 66% of all outstanding Tesla shares.
Is Tesla Still a Good Stock to Buy?
Analysts remain cautious about Tesla’s long-term prospects. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 10 Holds, and 10 Sell ratings. The average Tesla price target of $384.14 implies 6.1% downside potential from current levels.
