Ray Dalio’s Bridgewater Associates, which is one of the world’s largest hedge funds, made significant adjustments to its portfolio in the fourth quarter of 2024. Notably, the fund opened a new position in electric vehicle maker Tesla (TSLA) by acquiring 153,600 shares. Bridgewater also initiated positions in ServiceNow (NOW), Moderna (MRNA), and utility company PPL (PPL).
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In addition to these new positions, Bridgewater increased its holdings in several existing investments. Indeed, the fund more than quintupled its stake in AT&T (T) to 6.48 million shares and nearly doubled its position in PayPal (PYPL) to 2.36 million shares. Bridgewater also boosted its holdings in AppLovin (APP) and Vistra (VST) by 85.6% and 58.9%, respectively.
On the other hand, Bridgewater reduced its exposure to several sectors with lower growth prospects. The fund sold off shares in Micron Technology (MU), Goldman Sachs (GS), Electronic Arts (EA), and Spotify (SPOT). This shift in strategy suggests that Bridgewater is pivoting towards sectors with higher growth potential, such as technology and consumer staples, where it has existing investments in companies like Applied Materials (AMAT) and Procter & Gamble (PG).
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 75% rally in its share price over the past year, the average TSLA price target of $340.50 per share implies 3.2% downside risk.
