Key findings

• Significantly high institutional ownership implies that Tesla’s share price is sensitive to their trading activities
• The 25 largest shareholders own 44% of the company
• Insiders own 13 percent of Tesla

Any investor in Tesla, Inc. (NASDAQ:TSLA) should be aware of the most powerful shareholder groups. Institutions own the most shares in the company, with 46% of the shares. That means the group benefits the most when the stock rises (or loses the most when there is a downturn).

Last week’s $70 billion gain in market capitalization would likely be appreciated by institutional investors, especially after a year of losses of 5.7 percent.

Let’s take a closer look at what the different shareholder types can tell us about Tesla.

Check out our latest analysis for Tesla

What does institutional ownership tell us about Tesla?

Many institutions measure their performance against an index that is similar to the local market, so they tend to pay more attention to companies listed in major indices.

We can see that Tesla has institutional investors; and they hold a good portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone, as institutions sometimes make bad investments, just like everyone else. It is not uncommon for a large share price to fall when two large institutional investors try to sell a stock at the same time, so it is worth checking Tesla’s past earnings history (see below). Of course, remember that there are other factors to consider as well.

Hedge funds don’t own many Tesla shares. CEO Elon Musk is the largest shareholder with a 13% stake. The second and third largest shareholders hold 7.4% and 6.0% of the shares outstanding, respectively.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the register, suggesting that this is a large group of small shareholders, with no single shareholder having a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you can look at forecasted growth quite easily.

Insider ownership of Tesla

The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. Management is ultimately accountable to the board. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Most people consider insider ownership to be a positive because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated in this group.

It appears that insiders own a significant amount of Tesla, Inc. It is very interesting to see that insiders own a significant $92 billion stake in this $706 billion company. Most would say that this shows a good level of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have been buying or selling.

Public property

With a 41% ownership stake, the general public, which consists largely of individual investors, has some influence over Tesla. While this size of ownership may not be enough to sway a political decision in their favor, they can still collectively influence company policy.

Next Steps:

While it is worth considering the different groups that own a company, there are other factors that are even more important. Take risks, for example – Tesla has 1 warning sign In our opinion, you should be aware of this.

Ultimately The future is the most important thing. You can access these free Report on analyst forecasts for the company.

NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.