Billionaire hedge funds buy Tesla stock and sell Palantir stock

From Nasdaq: 2025-02-01 03:05:00

In the past year, Tesla (NASDAQ: TSLA) and Palantir Technologies (NASDAQ: PLTR) stocks have surged by 109% and 385%, respectively. Billionaire hedge fund managers such as Ken Griffin and Israel Englander bought Tesla shares while selling off Palantir stocks in the third quarter.

Griffin of Citadel increased his Tesla position by 396% with 1.1 million shares bought, while selling 5.1 million Palantir shares. Similarly, Englander of Millennium Management increased his Tesla position by 51% and reduced his Palantir stake by 90%.

Griffin and Englander, known for running highly profitable hedge funds, made notable moves in the third quarter. Other reputable investors also either bought Tesla or sold Palantir during this period, signaling potential investment opportunities.

In the third quarter, Viking Global’s Andreas Halvorsen bought a small Tesla position, while Stanley Druckenmiller of Duquesne Family Office reduced his Palantir holdings by 95%. These trades provide insights into the strategies of successful fund managers.

Tesla’s recent financial results showed a decline in annual deliveries, with only a 2% increase in revenue to $26 billion. However, CEO Elon Musk remains optimistic about the launch of the full self-driving software and a robotaxi service, signaling growth potential for the company.

Analysts expect Tesla’s adjusted earnings to rise by 19% over the next four quarters. Despite the stock’s high valuation, some hedge funds bought shares in anticipation of regulatory benefits under the Trump administration. Investors are advised to wait for a better entry point before considering Tesla.

Palantir Technologies, a provider of data analytics software, reported strong financial results in the third quarter. Despite this, analysts view the stock as overvalued, with a median target price suggesting more than 50% downside. Hedge funds sold Palantir shares due to concerns about its current valuation.

Morningstar analyst Mark Giarelli believes Palantir’s innovative approach to data analytics could disrupt traditional methods. The company’s focus on continuous improvement and customer growth are key factors driving its success in the market.

Wall Street expects Palantir’s adjusted earnings to grow by 31% over the next four quarters. However, the stock’s current valuation is considered excessively high, leading analysts to recommend caution and await a more favorable buying opportunity.

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Read more at Nasdaq: Tesla Stock vs. Palantir Stock: Billionaires Buy One and Sell the Other