Tesla Faces Institutional Sell-Off as Retail Investors Stay Bullish

Major Wall Street banks have reduced their exposure to Tesla, but retail investors remain optimistic about the electric vehicle maker's prospects. The company continues to push forward with its self-driving ambitions and plans to ramp up production of new products this year.

According to recent filings, UBS Asset Management cut its Tesla stake by 59 million shares, a reduction of around 74%, while Nomura Holdings reduced its position by more than 80%. Citigroup trimmed its holdings by around 3.1 million shares, or 32%, and Goldman Sachs Group cut its stake by over 2.4 million shares.

Tesla's retail investors, however, remain bullish on the company's prospects, with many focusing on its Full Self-Driving (FSD) narrative. The company said that Tesla owners have driven more than 8 billion miles using FSD, and adoption reached nearly 1.1 million paid customers globally in Q4.