Scottish Mortgage Sells Tesla Stake, Trims SpaceX Holding to 11.1%
Scottish Mortgage has sold its remaining Tesla shares, according to the trust's Friday statement. It also reduced its SpaceX holding to 11.1% of assets, citing valuation and competition concerns.
In this article
Scottish Mortgage Tesla stake sale marks a clear break with one of Elon Musk's earliest institutional backers, according to CNBC. The U.K. investment trust said on Friday that it had sold its remaining Tesla shares and cut its SpaceX holding to 11.1% of assets.
Key points
- Scottish Mortgage has sold its remaining Tesla stake, according to the trust's Friday statement.
- The trust's SpaceX holding now accounts for 11.1% of its assets.
- The trust says its Tesla investment, first made in 2013, has returned 13 times the capital invested.
- It pointed to intensifying competition in Tesla's core automotive business, particularly in China.
- SpaceX and Tesla shares fell about 9% and 11%, respectively, on Thursday, according to CNBC.
Scottish Mortgage Tesla stake: what happened
The trust said it first invested in Tesla in 2013. In its statement, it said the investment had returned 13 times the capital put in, but that the share price had come to reflect much of the company's promise in autonomy and robotics. That reasoning was the basis for the decision to exit, as reported by CNBC.
The trust also cited intensifying competition in Tesla's core automotive business, particularly in China. Competition in electric vehicles has been a recurring theme for the company, and the trust framed this pressure as a factor alongside the valuation view.
Scottish Mortgage is one of several U.K. investment trusts that were early backers of SpaceX. These vehicles are comparable to closed-end funds in the United States. The trust now holds SpaceX at 11.1% of its assets. The report does not say what the holding was before the reduction, so the size of the cut cannot be measured from the available material.
The sale comes amid a sharp sell-off in Musk-linked stocks. According to CNBC, shares in SpaceX and Tesla fell about 9% and 11%, respectively, on Thursday. Their combined market value dropped more than $420 billion below Tuesday's close. CNBC reported that investors fear Musk could face new congressional probes after the U.S. midterms, which could expose his companies to tighter regulation.
Scottish Mortgage is not the only Baillie Gifford-linked vehicle in focus. Edinburgh Worldwide Investment Trust, another Baillie Gifford fund, was the target of a bitter activist campaign in 2025 led by Boaz Weinstein's hedge fund, Saba Capital. Its SpaceX holding became a key flashpoint in that long-running dispute.
Why it matters for traders
A large, long-term holder exiting a stock can draw attention because it signals that a professional investor believes the price already reflects much of the company's future potential. Such moves do not, on their own, determine where a share price goes, but they can shape sentiment, especially when they coincide with a sell-off.
The decision also highlights how investment trusts are structured. Their share prices can trade at premiums or discounts to the value of the assets they hold, so changes in holdings can interact with how the trust itself is valued by the market. Investors looking at these vehicles often watch disclosures on top holdings closely.
For Tesla, the trust's comments put two issues in front of the market: the valuation placed on its autonomy and robotics ambitions, and the level of competition in its car business. For SpaceX, the reduction in exposure is a reminder that early private-market backers are reassessing their positions. This article does not offer any view on whether to buy or sell either stock.
Market reaction and data
The table below summarises the share price moves reported by CNBC for Thursday. The report does not say how SpaceX shares are quoted, so the SpaceX figure should be read as CNBC's reported move.
| Company | Reported move (Thursday) | Other reported figure |
|---|---|---|
| Tesla | About -11% | Part of combined value drop above $420 billion versus Tuesday's close |
| SpaceX | About -9% | Part of combined value drop above $420 billion versus Tuesday's close |
Separately, Binance spot data for Bitcoin, which is not linked to the Tesla and SpaceX reports, showed BTC/USDT last trading at 76,046.00, up 0.58% over 24 hours, at 05:26 UTC on 7 November 2026. That snapshot does not reflect any direct market response to the trust's decision.
What to watch next
- Whether investor concerns about congressional probes after the U.S. midterms grow or fade, as CNBC reported.
- How competition in China affects Tesla's core car business in the coming periods.
- Whether other U.K. investment trusts that backed SpaceX disclose similar changes to their holdings.
- Developments in the activist campaign involving Edinburgh Worldwide Investment Trust and its SpaceX stake.
- Broader market calendar items, such as the NZD Parliamentary Elections on Friday at 21:45 UTC, which are not directly related to this story.
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FAQ
What does the Scottish Mortgage Tesla stake sale mean for investors?
The sale shows that one long-term backer has concluded the share price already reflects much of Tesla's promise. This is a single investor's decision and not a recommendation for anyone else.
How much of Scottish Mortgage's assets are now in SpaceX?
According to the trust's statement as reported by CNBC, its SpaceX holding now represents 11.1% of assets. The report does not give the earlier level, so the size of the reduction is unclear.
Why did Tesla and SpaceX shares fall on Thursday?
CNBC reported that investors fear Elon Musk could face new congressional probes after the U.S. midterms, potentially exposing his companies to tighter regulation. The report links this concern to the sell-off.
Risk warning: This article is for information only and is not investment advice. Trading forex, CFDs, stocks and crypto carries a high risk of losing money. Prices move fast – check live quotes before you trade.
