In contrast to his projections of the stock hitting $2,000 over the next 10 years, longtime Tesla Inc. (TSLA, Financial) shareholder Ron Baron (Trades, Portfolio) has sold 1.8 million shares for clients over the past six months.
The billionaire investor told CNBC's "Squawk Box" on Thursday that his New York-based firm sold the shares because they were becoming too large a percentage in some portfolios.
"It was painful selling every single share," Baron said, but added that "risk mitigation" was necessary for his clients.
He also disclosed that he has not sold any of his personal stake of more than 1.1 million shares in the electric vehicle manufacturer. The guru plans to retain his holding for "10 years at least" since he told Tesla CEO Elon Musk that he "would be the last out."
In June, the value investor told CNBC he believed Tesla's upside had "10 times more to go." Several months later in October, he then predicted it will eventually become a $2 trillion company.
As of Dec. 31, Baron Funds held over 6 million shares, representing its largest holding with a weight of 11.75% in the equity portfolio. The firm has been investing in the company since 2012. So far, it has gained approximately 1,194.84% on the stake according to GuruFocus.
Tesla's stock climbed more than 300% over the past year. With a $623.92 billion market cap, its shares were trading around $641.81 on Thursday.
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Disclosure: No positions.
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