A key early investor has sold the last of its Tesla shares and sharply reduced its SpaceX holding, taking profits from two of its most successful long-term bets.
Scottish Mortgage Investment Trust, a London-listed closed-end fund managed by Baillie Gifford, said Friday that SpaceX represented 11.1% of its total assets as of Wednesday, down from 15% at Sept. 30.
The position helped drive Scottish Mortgage’s 31.5% net asset value return in the six months to the end of September. In its half-year results statement, Scottish Mortgage also said it sold its remaining Tesla stake in April, ending an investment that dated back to 2013.
SpaceX windfall
Scottish Mortgage first invested in SpaceX in December 2018, when Elon Musk’s rocket company had a reported valuation of about $31 billion, and committed roughly $200 million through 2021.
Scottish Mortgage Investment Trust.
The investment surged in value as SpaceX expanded its launch business and Starlink satellite network. By the time of its blockbuster IPO in June, SpaceX represented roughly a quarter of Scottish Mortgage’s portfolio by value.
The investment trust has since sold shares as post-IPO lock-up restrictions have lifted in stages, though it said its conviction in SpaceX remains high.
“The decision to reduce the position following its flotation, while retaining a substantial investment, demonstrates the importance of balancing conviction with disciplined portfolio management,” Scottish Mortgage said.
SpaceX was a major contributor to Scottish Mortgage’s performance during the period, adding 8 percentage points to returns.
SpaceX.
The trust’s net asset value, or NAV, delivered a total return of 31.5% in the six months through Sept. 30, compared with a 16% return for the FTSE All-World Index. Its share price returned 33.8%.
Proceeds from the SpaceX sales also helped Scottish Mortgage repay borrowings and reduce gearing.
Tesla exit
The Tesla sale closes another highly profitable bet for Scottish Mortgage, which invests globally in a mix of public and private high-growth companies, typically with a longer-term investment view.
In a portfolio update in July, the fund said it had invested around $470 million in Tesla, and generated approximately $6.2 billion in realized profit over 13 years.
Tesla.
“Since we first invested in 2013, it has returned 13 times the capital invested, but we felt the share price had come to reflect much of its promise in autonomy and robotics,” Scottish Mortgage said on Friday.
The trust also pointed to intensifying competition in Tesla’s core automotive business, particularly in China.
Scottish Mortgage is one of several U.K. investment trusts — comparable to closed-end funds in the U.S. — that were early backers of SpaceX.
Another Baillie Gifford fund, Edinburgh Worldwide Investment Trust, was the focus of a bitter activist campaign by Boaz Weinstein’s hedge fund Saba Capital in 2025, with its SpaceX holding becoming a key flashpoint in the long-running battle.
