Tesla shares in the stock market power struggle: major investors sell – private investors get in

• Tesla shares have been in a downward trend since the beginning of the year
• Institutional investors are selling Tesla shares on a large scale
• Private investors make targeted purchases

Tesla shares are once again at the center of a power struggle on the stock market. While large institutional investors are sometimes massively reducing their holdings, private investors are apparently taking advantage of the recent price weakness to make purchases. This creates a remarkable contrast between professional investors and retail investors in the US electric car manufacturer’s shares.

Since the beginning of the year, Tesla shares have lost over seven percent of their value (as of February 25, 2026). Although the overall market has trended sideways so far, it is susceptible to greater fluctuations. The sell-off in technology and software stocks in particular is forcing investors to re-evaluate high-growth stocks.

Billions in reallocations among institutional investors

The focus of the current discussion is the strategic direction of the group. According to experts, the crucial question is whether the long-term ambitions in the areas of artificial intelligence and autonomous driving can outshine the short-term burdens in the core business.

According to data from the analysis firm Quiver Quantitative, numerous funds significantly reduced their Tesla positions in the fourth quarter of 2025. UBS Asset Management reduced its holdings by around 59 million shares – a decline of around 74 percent. The remaining holding amounts to a good 20 million shares. Nomura Holdings also reduced its position by more than 80 percent and sold nearly five million shares, the data showed. Goldman Sachs divested itself of almost 2.5 million securities, but remains one of the largest institutional shareholders. Morgan Stanley, on the other hand, reduced its exposure for the third quarter in a row. The data suggests that many professional investors are locking in profits or reducing risks in the technology sector.

Tesla shares in the focus of private investors

In contrast, private investors are remarkably determined. According to data from JPMorgan Chase as reflected in a recent report by Yahoo Finance, retail investors purchased $326 million in Tesla shares during the week of February 12-18, 2026. This made Tesla one of the most-bought individual stocks.

“Despite an overhang of sentiment related to ambitious capex plans – which dampened an otherwise solid earnings season and led some to seek refuge away from AI topics – retail investors remained steadfast in their equity allocations […]”, wrote Arun Jain from JPMorgan according to Yahoo Finance. The so-called “Magnificent Seven” continue to dominate the purchases of private investors, it is said. Within this group, Tesla ranks second behind Microsoft.

Tesla shares facing trend reversal or further pressure?

It remains to be seen whether private investors will be able to resist the trend of institutional investors in the long term. Historically, retail flows often follow the movements of large market participants with a time lag.

At the moment, however, many small investors appear to be continuing to rely on the strategic vision surrounding AI, autonomous driving and future growth areas. At the same time, another event is likely to generate additional attention: the planned IPO of SpaceX.

According to industry experts, increased volatility is likely – and a security that is likely to cause intense discussions in the coming months.

Bettina Schneider / editorial team finanzen.net

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