Chamath Palihapitiya revealed that he offered his Tesla place for capital to spend money on different funding concepts.
The Social Capital founder and CEO stated he exited his wager on the Elon Musk-led electrical automobile firm “within the final yr or so” because the excessive costs allowed him to generate money to fund his different concepts.
“I haven’t got an infinite pool of capital. So when I’ve these concepts, the cash has to come back from someplace,” Palihapitiya stated Wednesday at CNBC’s Delivering Alpha convention.
Palihapitiya told CNBC in January when Tesla was buying and selling round $800 that the corporate was a “distributed vitality enterprise” and that the inventory may double and even triple once more. Tesla closed Wednesday at $781.31.
Tesla was one of many greatest winners within the inventory market final yr on the again of robust demand for electrical automobiles and buyers’ choice towards growth-oriented corporations. The shares soared a whopping 743% in 2020. This yr, the inventory has underperformed the broader market with a ten.7% acquire yr thus far.
Palihapitiya stated he is nonetheless bullish on Tesla however his thesis on the corporate has modified a bit. He admitted that he “fully underestimated” how huge the EV market might be.
“While you see it now, the market has flipped. …Tesla will likely be very busy simply being a best-in-class EV firm,” he stated.
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