JP Morgan Boosts Tesla Stake by 9.5% as EV Investments Surge

J.P. Morgan Chase increased its stake in Tesla by 9.5% (or 3.43 million shares) in the first quarter of 2025, according to its latest 13F filing with the SEC. The asset manager held 39,415,548 shares in Tesla as of March 31, 2025, a position worth approximately $13.7 billion. This move underscores J.P. Morgan’s continued confidence in the electric vehicle (EV) sector, amid surging institutional interest and Tesla’s strong stock performance.

Tesla’s Rising Appeal to Investors

J.P. Morgan first opened a position in Tesla in Q2 2013 with 654,831 shares. Over the years, the bank’s stake has grown steadily, with a notable jump following Tesla’s 3-for-1 stock split in August 2022, which increased its position from 7.71 million to 24.93 million shares. Tesla’s stock price nearly doubled over the past year and surged 25% in the last five trading sessions, making it a standout in institutional portfolios.

Diversifying EV Investments

J.P. Morgan’s EV strategy extends beyond Tesla:

• Rivian: The firm increased its stake by 33.4% to 1,186,347 shares in Q1 2025.
• Lucid: Holdings rose slightly by 2.2% to 697,911 shares.
• Zeekr: After opening a position post-IPO in May 2024, J.P. Morgan raised its stake from 5,092 to 47,134 shares.
• Chinese EV makers: The bank sharply reduced its exposure, cutting NIO holdings from nearly 4 million to 200,000 shares and slashing XPeng by 71.8% to 1.29 million shares. Polestar holdings were trimmed by nearly 24.5%, leaving J.P. Morgan with about 875,000 shares.

These adjustments indicate a pivot toward U.S.-based and select global EV players, likely reflecting both competitive dynamics and regulatory considerations.

Industry Trends and Implications

Institutional investors are increasingly focused on the EV sector, with Tesla as the anchor. As of March 2025, Vanguard remains Tesla’s largest institutional shareholder with 246.89 million shares, followed by BlackRock with 205.67 million shares. J.P. Morgan ranked as Tesla’s seventh-largest institutional holder at the end of Q1 2025.

Other notable institutional moves include Goldman Sachs more than doubling its Tesla stake in Q1 2025, and Nuveen opening a new position with over 12.53 million shares.

Operationally, Tesla’s global production capacity exceeds 1.8 million vehicles annually, supported by factories in Fremont, Shanghai, Berlin, and Texas. Rivian produced about 57,000 vehicles in 2024, while Lucid targeted 9,000 units. Zeekr, backed by Geely, increased deliveries to 230,000 vehicles globally in 2024.

Economic and Regulatory Context

Tesla’s market cap stands at approximately $1.1 trillion as of May 2025, dwarfing rivals such as Rivian ($14–17 billion) and Lucid ($8–10 billion)[3]. U.S. tax credits of up to $7,500 for EVs continue to bolster demand, though trade tensions could impact Chinese brands’ U.S. market access.

J.P. Morgan’s selective EV investments reflect these dynamics, prioritizing firms with strong U.S. market access and growth prospects.

Perspectives d'avenir

J.P. Morgan’s increased Tesla stake, along with strategic positions in Rivian, Lucid, and Zeekr, underscores the EV sector’s ongoing investment potential. As Tesla aims for 3 million vehicles annually by 2027 and competitors scale up, institutional backing is likely to drive further innovation and adoption. For consumers, this signals a robust future for electric mobility, with more models, better range (the Tesla Model Y offers up to 320 miles), and expanding charging infrastructure.

Photos courtesy of Tesla