Chamath Palihapitiya says he sold his Tesla stake to fund other investments

Longtime Tesla bull Chamath Palihapitiya explained Wednesday he’s cashed out his stake in the electrical-automobile enterprise in favor of new financial commitment opportunities.

Talking at CNBC’s Providing Alpha convention, Palihapitiya, the founder and chief government of Social Capital, reported he marketed his Tesla stake “in the final calendar year or so,” as the stock’s price surged to all-time highs.

Palihapitiya explained he’s still bullish on Tesla’s long term, but the marketing option was way too very good to go up. “I do not have an infinite pool of funds. So when I have these strategies, the cash has to occur from someplace,” he reported.

Last year, Tesla shares
TSLA,
+.48%
soared additional than 740%, and topped out in close proximity to $900 this previous January. While the inventory has calmed down in 2021 — up only 11% — it is still up 82% over the past 12 months. Tesla ended Wednesday at $781.31.

Palihapitiya, who in 2017 mentioned brief-sellers were wholly underestimating Tesla’s company, explained Wednesday that even he underestimated the electric powered-automobile current market, predicting that Tesla “will be pretty busy” in the long term.

Palihapitiya has been active himself, leading the recent SPAC charge. In June, he submitted for 4 additional particular-objective acquisition organizations, targeted on biotech providers.