Scottish Mortgage Investment Trust, one of the early major investors of Tesla (TSLA.US), has sold its entire stake in the automaker and sharply reduced its holdings in SpaceX (SPCX.US), cashing in profits from two of its most successful long-term investments.

Scottish Mortgage Investment Trust, a London-listed closed-end fund managed by Baillie Gifford, said last Friday (6th) that SpaceX accounted for 11.1% of its total assets, down from 15% on September 30, as of last Wednesday.

The holdings helped drive Scottish Mortgage's NAV return to 31.5% for the six months ended September. The fund also said in its interim results statement that it sold its remaining Tesla stake in April, ending an investment that began in 2013.

Scottish Mortgage first invested in SpaceX in December 2018, when SpaceX was reportedly valued at about USD31 billion, and invested a total of about USD200 million by 2021.

As SpaceX expanded its launch business and Starlink satellite network, the value of the investment surged. By the time of the major IPO in June, SpaceX accounted for about one-quarter of Scottish Mortgage's portfolio by value.

SpaceX and Tesla shares tumbled about 9% and 11% respectively last Thursday, with their combined market value dropping by more than USD420 billion from last Tuesday's close. Investors are concerned that Musk may face new congressional investigations after the US midterm elections, and that his companies could be subject to stricter regulation.
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AASTOCKS Financial News
Website: www.aastocks.com

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