As Tesla (NASDAQ: TSLA) grappled with boycotts and drops in sales, institutional interest in the stock also took a massive hit in Q1 2025.
In the first three months of the year, institutional capital inflow into Tesla stock declined by 95.12% compared to the previous quarter, falling from $52 billion to $2.54 billion, according to data retrieved by Finbold from financial data platform MarketBeat on April 8.
The outflow of institutional capital followed a similar trajectory, dropping from $21 billion in Q4 2024 to just $2.32 million in Q1 2025, a 98.89% decline in institutional selling activity.
This suggests that institutions are buying far less Tesla stock and choosing to hold existing positions rather than exit them.
Despite this substantial drop in quarterly activity, Tesla’s broader institutional profile remains significant. Over the past year, the company recorded $71.12 billion in total institutional inflows and $30.03 billion in outflows, resulting in a net inflow of over $41 billion.
This trend indicates long-term confidence among large investors, even amid the recent pullback in quarterly trading volumes.
Currently, institutional investors hold 66.20% of Tesla’s outstanding shares. Over the past year, 2,818 entities bought into the stock, while 1,815 reduced or exited their positions.
TSLA share price performance
Notably, amid these institutional dynamics, Tesla stock has withstood a rollercoaster. After beginning the year on a high note, driven by post-election optimism, TSLA faced the threat of dropping below $200 partly due to a tariff-induced market sell-off.
By press time, the electric vehicle (EV) equity was showing strength, gaining nearly 7% and trading at $248.
Meanwhile, Wall Street remains cautiously optimistic about the stock’s future amid ongoing headwinds.
For instance, as reported by Finbold, Tesla’s biggest bull, Dan Ives of Wedbush Securities, slashed his price target from $550 to $315, citing concerns about CEO Elon Musk’s political involvement.
However, the analyst maintained an ‘Outperform’ rating on the equity, banking on the company’s resilience to bounce back from challenging moments.
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