Despite a dip in electric vehicle (EV) sales and increasing competition, Tesla Inc. continues to command strong institutional backing from leading mutual funds. As of the latest filings, major asset management firms like Vanguard, Fidelity, and BlackRock remain among the largest shareholders in Tesla, holding billions of dollars worth of equity in the electric automaker.
Vanguard Group: Leading the Pack
The Vanguard Group is Tesla’s largest institutional investor through a range of index funds. Collectively, Vanguard holds approximately 243 million Tesla shares, representing between 7% to 7.6% of the company’s outstanding shares.
Key mutual funds under Vanguard holding Tesla stock include:
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Vanguard Total Stock Market Index Fund – Approximately 83.9 million shares, accounting for 2.6% of Tesla’s total shares and about 1.6% of the fund’s assets.
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Vanguard Institutional Total Stock Market Index Fund – Roughly 83.3 million shares, forming 2.62% of Tesla’s equity and 1.39% of the fund portfolio.
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Vanguard 500 Index Fund (VFIAX) – Holds around 64.5 million shares, representing 2.03% of Tesla and 1.87% of the fund.
The sheer scale of Vanguard’s holdings illustrates Tesla’s entrenched position in major U.S. equity indices.
Fidelity: Passive Exposure Through S&P 500 Fund
Fidelity’s involvement in Tesla is primarily through its Fidelity 500 Index Fund, which tracks the S&P 500. As of March 2025, the fund held approximately 35 million shares of Tesla, making up roughly 1.5% of Tesla’s outstanding stock.
Though smaller than Vanguard’s position, Fidelity’s stake reflects Tesla’s continued relevance in benchmark equity indices. The Fidelity 500 Index Fund ranks among the top 10 mutual funds holding Tesla stock.
BlackRock and State Street: Major Institutional Backers
Apart from Vanguard and Fidelity, other asset management giants also maintain significant positions in Tesla:
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BlackRock: Holds about 202 million Tesla shares, translating to approximately 6.3% of the company’s equity. These holdings span across funds like the iShares Core S&P 500 ETF and others managed under its iShares and BlackRock Advisors arms.
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State Street Global Advisors: Owns close to 112 million shares, representing around 3.5% of Tesla’s outstanding stock.
Broader Institutional Ownership
Institutional investors collectively hold an estimated 47.5% to 66% of Tesla’s outstanding shares, based on March 2025 data. This considerable ownership indicates that Tesla’s stock performance is significantly influenced by institutional behavior, particularly from large passive index fund managers.
Why These Holdings Matter
While Tesla’s market share in Europe declined by nearly 49% in April 2025, these major mutual funds continue to support the stock. Their strategies are largely driven by Tesla’s inclusion in key indices like the S&P 500 and the Russell 1000, which mandates allocation regardless of short-term stock performance.
For investors, this means Tesla benefits from structural support in passive portfolios. Unless removed from these indices or if there’s a substantial drop in market capitalization, Tesla will likely remain a core holding in these funds.
Outlook
As EV markets face economic pressures and regulatory shifts, Tesla’s fundamentals are under increased scrutiny. Yet, institutional holders appear to be maintaining course. Given the passive nature of most mutual fund allocations, Tesla’s stake in these vehicles is unlikely to change dramatically in the near term.
That said, should there be any major governance, index eligibility, or regulatory challenges, rebalancing by these large funds could significantly impact Tesla’s stock.
Summary Table: Major Mutual Fund Holdings in Tesla
|
Mutual Fund/Firm |
Tesla Shares Held (approx.) |
% of Tesla Shares |
% of Fund Assets |
|
Vanguard Group (total) |
~243 million |
~7–7.6% |
Various |
|
– Vanguard Total Stock Market Fund |
~83.9 million |
2.6% |
1.6% |
|
– Vanguard Institutional Total Market |
~83.3 million |
2.62% |
1.39% |
|
– Vanguard 500 Index Fund (VFIAX) |
~64.5 million |
2.03% |
1.87% |
|
Fidelity 500 Index Fund |
~35 million |
1.5% |
Not disclosed |
|
BlackRock (total) |
~202 million |
6.3% |
Not disclosed |
|
State Street Global Advisors |
~112 million |
3.5% |
Not disclosed |
How This Affects Indian Investors
a) Access via International Mutual Funds & FoFs
b) Regulatory & Investment Caps
c) Taxation Considerations
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International mutual funds in India (with ≥35% foreign equity) are taxed at 12.5% LTCG if held for over two years; short-term gains are taxed at slab rates, with no ₹1.25 lakh exemption, unlike domestic equity funds. -
As of April 2023, SEBI’s tax revamp altered treatment: foreign funds no longer benefit from standard equity tax slabs.
d) Alternatives: Direct Platforms & ETFs
Indian-listed ETFs like NASDAQ‑100 or S&P‑500 trackers provide another route, though they often trade at premium and remain volatile.
Conclusion
Tesla’s prominence in the global EV space continues to be mirrored by the confidence of major mutual fund players. Despite market volatility and slowing sales in key regions, the company enjoys enduring backing from leading index fund managers. This backing, driven more by passive allocation than conviction investing, gives Tesla a degree of resilience in institutional portfolios.
