Since Tesla’s (TSLA) IPO in June 2010, shares of the automaker have skyrocketed more than 22,000% (not a typo). With that meteoric rise, there have been more than a few people who have become millionaires with an early investment in the automaker.
With an even larger investment, the likes that an investment fund can make, the returns can be even higher. That’s the case with the Edinburgh-based Scottish Mortgage Investment Trust.
The fund, managed by Baillie Gifford, made their first investment in 2013 when the stock was valued at around $6 per share. In 2020 when the stock rose more than 700%, the fund made $29 billion (£21bn) for its investors, which include pension funds, foundations, and charities, reports The Guardian.
The number could have been even higher if the fund wasn’t forced to sell some of their shares during the year. As the value continued rise in 2020, their stake in Tesla passed the maximum percentage it was allowed to hold in any single stock.
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To avoid breaking the rules, they had to get rid of some of their shares, recording a profit of $14.8 billion from the sale.
Tesla hot streak has continued into 2021, rising more than 20% in the first three weeks of the year.
Disclaimer: Darryn is long Tesla (TSLA).
