The Mormon Church’s $100 billion fund grew its Tesla

FILE PHOTO: A flag flies at half mask outside the world headquarters of the Mormon Church for Thomas S. Monson, President of the Church of Jesus Christ of Latter-Day Saints (The Mormon church) in Salt Lake City, Utah, U.S., January 3, 2018.  REUTERS/George Frey
The Mormon Church is betting massive on Tesla.

  • The Mormon Church’s $100 billion fund grew its Tesla stake by about 3,500% in 2020.
  • Ensign Peak Advisors’ place ballooned in worth from $1 million to $330 million.
  • Tesla ranked among the many fund’s 25 most-valuable holdings in December.
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Elon Musk has hawked Tesla-branded tequila and quick shorts, smoked weed throughout a stay podcast, and sparred with regulators over his Twitter behavior. That did not cease the famously ascetic Mormon Church from boosting its stake in Musk’s electric-vehicle firm by 3,500% final 12 months.

Ensign Peak Advisors, the $100 billion funding fund owned by the Church of Jesus Christ of Latter-Day Saints, held fewer than 13,00zero Tesla shares on the finish of 2019, adjusted for the five-for-one inventory cut up final August, SEC filings present. It elevated its stake greater than five-fold within the second quarter of 2020, then raised it by greater than 50% the next quarter. Nonetheless not happy, it roughly quadrupled its place to 467,00zero shares as of December 31 final 12 months.

The fund’s aggressive shopping for, coupled with a 700% improve in Tesla’s inventory value final 12 months, led to its stake skyrocketing in worth from $1 million to $330 million within the house of 12 months. Tesla was the 23rd most-valuable holding in Ensign’s US inventory portfolio as of December, up from 1,487th on the checklist a 12 months earlier. Probably the most helpful was Apple, at simply over $2 billion.

Tesla’s admission to the S&P 500 in December possible factored into Ensign’s choice to bolster their place. Nevertheless, their purchases over the previous 12 months recommend they’re bullish on the inventory regardless of its valuation. The corporate’s market capitalization sits above $600 billion – greater than 19 instances its whole income and over 800 instances its web revenue final 12 months.

Tesla’s true believers see it as a trailblazer within the clean-energy revolution, poised to seize an enormous chunk of a market price trillions of {dollars}. In the meantime, critics query its eye-watering valuation, tiny scale relative to established automakers, and Musk’s erratic management. The Mormon Church is betting massive that the primary group are proper.

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